Set-up Indian tax rates in Shopify

Shopify Taxes India Flag

This short guide will help you set-up taxes correctly for your Shopify store based in India.

First, please note that you're obliged to charge taxes only if your business is registered for GST.

In most Indian states, you are required to register for GST if your annual turnover exceeds 19 lakhs. In the North Eastern Indian states, the threshold is 9 lakhs.

Tax settings

You can set tax rates for your store on the Settings → Taxes page in your Shopify admin.

If you do not see India in the list of countries in the Tax rates list, visit the SettingsShipping page and click Add shipping zone, then click Add countries and select India

Once you have India included in the Tax rates list, you can set up the individual tax rates of each state.

To set-up tax rates for India:

  1. Go to the SettingsTaxes page in your Shopify admin and click on India.
  2. Enter the 9% CGST tax rate into the Country Tax field.
  3. For the state your store is based in, add the SGST (or UTGST) rate and choose added to 9% federal tax from the drop-down. 
  4. For all other states, add the IGST rate and choose instead of 9% federal tax from the drop-down. 

Shopify Tax Settings for India GST

An example of tax settings for a Shopify store based in Andhra Pradesh.

Different tax rates

If you sell products that are taxed at different tax rates (slabs), you will need to add tax overrides.

To set up tax overrides in Shopify:

  1. Go to the SettingsTaxes page in your Shopify admin and click on India.
  2. Scroll down to Tax overrides.
  3. Add a collection of products from your store that should be taxed differently and set their Tax Rates for both India and individual states.

Shopify tax settings India tax overrides GST

An example of tax overrides for a Shopify store based in Andhra Pradesh.

Caution

Please be aware that changing your tax settings in Shopify will only affect orders and invoices created after the change was done. Taxes on your existing invoices will remain unchanged.

Invoices

When you set your tax rates correctly in your store, Sufio will automatically create valid invoices with the breakdown of different GST taxes charged. 

Issuing invoices with a correct tax breakdown is vitally important for your bookkeeping and tax purposes.

If you are selling to businesses (B2B), Sufio invoices display all the required information including your GSTIN (Goods and Services Tax Identification Number) and your customers' GSTIN.

Also, if your online store has an annual turnover of more than Rs. 1.5 crores, it is necessary that you include HSN codes of your products on invoices. Sufio will automatically display these codes in the Description section of your invoices.

Intra state invoice india gst

This is what an invoice would look like for an intra-state purchase.

inter state invoice india gst

This is what an invoice looks like for an inter-state purchase.