Why multi-vendor marketplaces fail at taxes (and how MyntCart doesn't)
By CodeMynt Admin
1 min read
The percentage trap
Most e-commerce platforms treat tax as a single percentage on the cart. That works until your first marketplace order where the vendor sits in Telangana, the buyer in Karnataka, and one line item ships from a third state's warehouse. Now tax is a routing problem: each order line needs its own CGST/SGST or IGST decision based on the supply chain behind it.
Model tax at the line, not the cart
In MyntCart every order line carries its own place-of-supply calculation. The invoice generator aggregates lines per vendor, which means a single customer order can correctly produce three GST-compliant invoices from three sellers. Your accountant sees clean per-vendor exports instead of a blended number nobody can reconcile.
Commercial tax is still alive
Several categories still attract state commercial taxes alongside or instead of GST. We run both engines in parallel and let the admin map categories to regimes — because tax law does not care about your data model.
What to ask your platform vendor
If you are evaluating marketplace software, ask one question: "Show me one order with two vendors in two states." If the demo cannot produce two correct invoices, walk away.
Frequently asked
Does MyntCart generate separate invoices per vendor?
Yes — a multi-vendor order produces one GST-compliant invoice per vendor automatically, each with the correct CGST/SGST/IGST split.
