Hi,
My products are with a GST of 12% and is included in the product. however Shopify calculates it wrong. From example below the tax amount should be 660 ( 12% of 5500) but it calculates as 589.29 … Please can anyone kindly help me out with this.
Hi, are you sure you configured it correctly in settings/markets/select country/taxes?
The GST formula is GST Amount = (Selling Price x GST Rate) / 100.
Where can I check if this is used maybe ?
Maybe this will help you:
https://www.youtube.com/watch?v=wCbOME28Aik
https://www.youtube.com/watch?v=kkGv_4eJDiM
Thanks for the videos, We have set up everything accordingly. Only the amount calculated is shown wrong as mentioned earlier. Is there a method to check what formula Shopify is using to calculate GST ?
As per what I have understood from the image is your amount of 5500 is inclusive of GST tax. So that means the amount on which the tax will be applied is 5500-589.29 = 4910.71.
So now if you apply 12% on 4910.71 it calculates as 589.285 ~ 589.29.
I hope this explanation helps.