# Issue with Product Tax Calculation

**URL:** <https://community.getswipe.in/t/issue-with-product-tax-calculation/2760>\
**Category:** General\
**Created:** [April 1, 2025, 1:32pm UTC](https://community.getswipe.in/t/issue-with-product-tax-calculation/2760 "2025-04-01T13:32:47Z")\
**Posts on this page:** 1\
**Page:** 1

<div class="post-metadata">

**Author:** ![swipe](https://avatars.discourse-cdn.com/v4/letter/s/439d5e/32.png) [@swipe](https://community.getswipe.in/u/swipe)\
**Post date:** [April 1, 2025, 1:32pm UTC](https://community.getswipe.in/t/issue-with-product-tax-calculation/2760/1 "2025-04-01T13:32:47Z")

</div>

When creating invoices that include products with varying tax rates, it’s crucial to calculate the taxes correctly. Issues can arise when both taxable and non-taxable products are combined, especially when you try to apply GST across the total value.

**Example:**

In the screenshot below, you’ll notice two products:

1. **Bag** – ₹540 with 18% GST, total of ₹637.2.
2. **Raincoat** – ₹400 with 0% GST, so the total is ₹400.

#### Correct Tax Calculation Breakdown

- **Total Taxable Amount (pre-tax):** ₹540 (bag) + ₹400 (raincoat) = ₹940
- **GST on taxable products:** ₹97.2 (applied only to the bag with 18% GST)
- **Total with tax:** ₹637.2 (bag total) + ₹400 (raincoat total) = ₹1,037.2

 ![image](https://canada1.discourse-cdn.com/flex003/uploads/getswipe/original/2X/a/a1edcb3487fd2f2b6fbb2f675d3765c9799101f9.png)

#### **Important Note:**

As per GST regulations, even if a product has 0% GST (like the raincoat), it still needs to be included in the **total taxable amount** for calculation purposes. The GST is applied only to the taxable items (like the bag in this example).