1. 💡 Core Features
  3. 🏛️ GST & Tax Engine
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  • 🏛️ GST & Tax Engine
  • 📒 Customer Ledgers & Khata

🏛️ GST & Tax Engine

How MudraHQ calculates Indian Goods and Services Tax (GST) — Intra-State CGST/SGST, Inter-State IGST, HSN/SAC codes, and statutory invoices.

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🧭 Automated Place of Supply Rules1. Intra-State Supply (Same State)2. Inter-State Supply (Different State)🏷️ HSN & SAC Classification🧾 Mandatory Tax Invoice Fields

MudraHQ includes a comprehensive tax computation engine designed to enforce compliance with the Central Goods and Services Tax (CGST) Act 2017 and Integrated Goods and Services Tax (IGST) Act 2017.

🧭 Automated Place of Supply Rules

The engine automatically inspects the merchant's GSTIN state code against the customer's state jurisdiction:

1. Intra-State Supply (Same State)

When the merchant and customer are located in the same Indian state or Union Territory (e.g. Telangana 36 to Telangana 36):

  • CGST (Central GST): Exactly 50% of the applicable GST slab.
  • SGST (State GST): Exactly 50% of the applicable GST slab.
  • Example (18% Slab on ₹10,000 subtotal):
    • CGST @ 9% = ₹900.00
    • SGST @ 9% = ₹900.00
    • Total Tax = ₹1,800.00 (Gross: ₹11,800.00)

2. Inter-State Supply (Different State)

When goods or services cross state boundaries (e.g. Maharashtra 27 to Karnataka 29):

  • IGST (Integrated GST): 100% of the applicable GST rate credited to the Integrated tax ledger.
  • Example (18% Slab on ₹10,000 subtotal):
    • IGST @ 18% = ₹1,800.00
    • CGST = ₹0.00, SGST = ₹0.00

🏷️ HSN & SAC Classification

MudraHQ maintains automated classification across standard Indian tax schedules:

Schedule / RateTypical CategoriesExample Items
0% (Exempt)Fresh agricultural produce, unpacked grainsUnbranded Wheat, Fresh Fruits
5%Household necessities, footwear under ₹1,000Edible Oils, Tea, Medicines
12%Processed food, apparel, educational suppliesFruit Juices, Notebooks, Calculators
18% (Standard)Industrial supplies, electronics, retail goodsPower Tools, Extension Cords, Hardware
28%Luxury automobiles, air conditioners, cementHigh-end electronics, AC Units

🧾 Mandatory Tax Invoice Fields

Every invoice generated by MudraHQ satisfies Section 31 of the CGST Act:

  1. Sequential Invoice Number unique for each financial year.
  2. Date of invoice issuance.
  3. Name, address, and GSTIN of the supplier.
  4. Name, address, and GSTIN (if registered) or State/Code of the recipient.
  5. HSN code of goods or SAC code for services.
  6. Description, quantity, and unit of measurement (UOM).
  7. Total value and taxable value of goods or services.
  8. Rate and amount of tax (CGST, SGST, IGST split).
  9. Place of supply along with the name of the State.