Understanding Amazon Product Tax Codes

When you sell products on Amazon, you need to know about Goods and Services Tax (GST). Each product category has a specific GST rate set by the government. To make this easier, Amazon uses Product Tax Codes (PTCs) to match products with these GST rates.
What are Product Tax Codes (PTCs)?
Product Tax Codes, or PTCs, are special IDs on Amazon that link products to the right GST rates. Think of them as GST codes just for Amazon.
Why are PTCs important?
Choosing the right PTC ensures Amazon calculates GST correctly for your sales. It automates tax calculations based on the PTC you select, making tax compliance simpler and reducing errors.
By picking the correct PTC:
- Accurate GST Calculation : Amazon applies the right GST rate linked to your PTC, keeping you compliant with tax rules.
- Easy Reporting : Amazon handles GST submissions to the government, reducing your paperwork.
- Avoiding Issues : Choosing the right PTC prevents tax mistakes and accounting problems.
Default Product Tax Code
The Default Product Tax Code applies to all your products unless you set a different PTC for each product (ASIN).
How to Set Product Tax Codes
You set PTCs in two ways:
- Account Level: This is mandatory and sets the Default Product Tax Code for all your products.
- ASIN Level: You can customize PTCs for specific products, overriding the default setting.
If you don’t set a PTC for a specific product (ASIN), Amazon uses your Default Product Tax Code for that product.
Product Tax Codes and GST percentage
Product Tax Codes (PTC) are codes in Seller Central that are mapped to GST rates notified by the Government. The table below provides the list of PTC and GST percentage: