How to Handle Taxes and GST in Shopify (Especially for Indian Sellers)?
How to Handle Taxes and GST in Shopify (Especially for Indian Sellers)?
Q&A Guide for Shopify Tax Setup, GST Configuration & Invoicing for Indian Businesses
Q: Does Shopify Support GST for Indian Stores?
A: Yes. Shopify fully supports GST configuration, tax-inclusive pricing, and invoice generation suitable for Indian eCommerce businesses.
You can:
-
Add GSTIN (Goods & Services Tax Identification Number)
-
Apply CGST, SGST, IGST based on state rules
-
Set tax-inclusive product prices
-
Use apps to create GST-compliant invoices
Q: What’s the Difference Between CGST, SGST, and IGST?
| Tax Type | When It Applies | Example |
|---|---|---|
| CGST + SGST | Intra-state sales (within same state) | Seller & buyer in Gujarat |
| IGST | Inter-state sales (across states) | Seller in Maharashtra, buyer in Delhi |
Shopify lets you define these automatically based on customer’s shipping address.
Q: How Do I Enable Taxes in Shopify?
Follow these steps:
-
Go to Settings → Taxes and Duties
-
Click “Set up” under India or relevant region
-
Add your GSTIN and business address
-
Enable “Include tax in product prices” (if needed)
-
Shopify will auto-apply:
-
5%, 12%, 18%, 28% GST rates based on product type
-
Correct tax type (CGST+SGST or IGST)
-
Q: How Do I Set Different GST Rates for Different Products?
-
In your Products section, open a product
-
Scroll to “Tax Settings”
-
You can create custom tax overrides (if needed)
đź“Ś Example:
-
Books (0% GST)
-
Electronics (18% GST)
You may need a tax override if your product doesn't fall into default GST categories.
Q: How to Show GST Breakdown on Invoices?
Shopify’s default invoices are basic. To get detailed GST invoices, use apps like:
| App | Features |
|---|---|
| Advanced GST Invoice | Shows GST split, auto-calculates CGST/SGST/IGST |
| Zoe GST Invoice India | Bulk download, HSN/SAC support, logo on invoices |
| GST Invoice India by WebPlanex | Perfect for Indian B2B sellers |
| Order Printer Pro | Custom invoice templates, branding options |
🧾 Most apps let you download PDFs and send them via email automatically.
Q: Can Shopify Auto-Calculate GST Based on State?
Yes. When a customer enters their address:
-
If shipping within the same state, Shopify applies CGST + SGST
-
If shipping to another state, it applies IGST
It depends on:
-
Your store’s business address
-
Customer’s shipping address
âś… This is auto-handled after tax setup is complete.
Q: Can I Sell Tax-Inclusive Products (MRP Pricing)?
Yes! In India, most consumer goods follow MRP pricing (inclusive of tax).
Here’s how to set it up:
-
Go to Settings → Taxes → Tax Calculations
-
Check the box: “All prices include tax”
-
Shopify will auto-calculate the tax portion from the total price
Example: â‚ą1,000 with 18% GST will show:
-
â‚ą847.45 as base price
-
â‚ą152.55 as GST
-
â‚ą1,000 as total
Q: What About GST Invoicing for B2B Orders?
If you’re selling to registered businesses:
-
Enable GST invoice apps with fields for:
-
Buyer’s GSTIN
-
Place of supply
-
-
Allow customer to enter their GST number at checkout (custom checkout field)
-
Provide tax-compliant downloadable invoice
đź’ˇ You may need a Shopify Plus plan for advanced checkout customization or use apps like Helplama or Custom Fields.
Q: What Are HSN/SAC Codes and Where to Add Them?
-
HSN (Harmonized System of Nomenclature) – for physical goods
-
SAC (Service Accounting Code) – for services
Shopify doesn't support native HSN/SAC fields yet, so:
-
Use invoice apps that let you add HSN/SAC per product
-
Some apps like Zoe GST Invoice support this feature
Q: Do I Need to File GST Separately?
Yes. Shopify doesn’t file GST for you.
You (or your accountant) will need to:
-
Export orders
-
Calculate output tax
-
File GSTR-1, GSTR-3B, etc. via GSTN or your CA/accounting software
Use Shopify reports + invoice app exports to simplify this.
Conclusion: A Proper GST Setup = Compliance + Customer Trust
Selling in India means being GST compliant from day one. Shopify makes it easier, but using the right apps and settings ensures peace of mind — and avoids penalties.
🇮🇳 Want Expert GST Integration with Shopify?
At RootSyntax, we help Indian sellers set up GST correctly, from tax mapping to invoice generation. Let us configure your store for GST →