Learn more about collecting and managing taxes while running your Shopify store in India.
This thread is part of the Regional Support threads offered for merchants based in India. To see which other topics are available, you can visit the India hub here.
Taxes for India can be enabled once you have added India as a country you ship to in your shipping settings. You can do this by heading to Settings > Shipping and delivery and adding the country of India to one of your shipping profiles.
Shopify provides a guide on charging goods and service taxes (GST), which is considered essential reading for Shopify merchants based in India. The guide covers a number of topics including details on GST registration, other forms of tax in India, and how to configure your Shopify tax settings accordingly.
One of the key aspects for merchants charging GST is knowing their obligations when an intra-state sale is made, and when an inter-state sale is made. For orders within the state where your business is located, you need to pay Central GST (CGST) to the central government and a State GST (SGST) to your state government. For orders outside the state where your business is located, a single tax called Integrated GST (IGST) is payable to the central government.
Shopify sets automatic tax rates for India and its regions, which appear as follows:
You will be able to change both the country tax and the tax rate for each region if desired. We recommend that all merchants required to charge and remit taxes in India review these rates and confirm they are correct. If you are unsure, or if you are wanting further clarification on what your tax obligations are, we recommend consulting a tax professional in your area.
There are also some apps that can help with managing your taxes in India, and some that can help with incorporating taxes into your invoices. These include:
If you have a question or comment to make about managing your taxes with Shopify in India, please post it below.