Implementing Indian GST: tax override

[itspriyanka]

Hi,

We have a store and the address is of Delhi, India.

We have multiple collections on our store, and they fall under 2 tax brackets:

3% GST

12% GST

Since most of our products are in 3% tax bracket, we have kept default tax as 3%. So I have set 1,5% federal tax (CGST). For states other than Delhi, I have configured 3% IGST instead of 1.5% federal tax. For Delhi, it is 1.5% SGST added to 1.5% federal tax.

For collection that falls under 12%, I have created a tax override. However, I am not able to configure it for Delhi region. For other regions, I am able to configure 12% IGST instead of 1.5% federal tax. For Delhi, the tax should be 6% CGST and 6% SGST. However, I am not able to configure it. It only gives me the option to add to 1.5% federal tax. For this collection, federal tax (CGST) is 6% and not 1.5%. 

I have approached Shopify support but they do not understand the Indian GST, from what I understood from their explanation. Anyone else faced this issue and has a solution? I am sure this is not a unique case.

Thanks in advance,

Priyanka

[Don]

Hi there, @itspriyanka!

You can check out our help doc on Indian GST and tax settings here. 

If you need to set up specific tax overrides that are not available in the Shopify admin alone, you can try searching in our app store for a solution. 

[itspriyanka]

Hi Don,

I went through the help docs shared. The override section does not specifically cover Indian GST, so I would like to explain it. You can let me know how I can implement it.

As explained in https://help.shopify.com/en/manual/taxes/india-gst,  India has SGST, CGST and IGST tax rates. For products that are sold in the same state, businesses need to collect SGST and CGST. For products that are sold outside of the state, businesses collect IGST. For eg. if the product falls under 3% GST and the business is in Delhi,

For orders from Delhi: We charge 1.5% CGST (federal tax) and 1.5% SGST (state tax) 

For orders outside Delhi: We charge 3% IGST (there is no CGST/federal tax charged)

So, the setting will be:

Shopify tax setting Tax type Default tax amount Tax behavior

Country tax	CGST	1.5%
Regions - All states except Delhi	IGST	3%	instead of 9% federal tax
Regions - Delhi	SGST	1.5%	added to 9% federal tax

For products that do not fall under 3% GST, but under 12% GST, I have created a manual collection called "Tax-12". For this collection; I need the following settings:

For orders from Delhi: We need to charge 6% CGST (federal tax) and 6% SGST (state tax) 

For orders outside Delhi: We need to charge 12% IGST (no CGST/federal tax)

How do I override my CGST (federal tax) which is set to 1.5% to 6% for this collection? I do not see a way to do this for tax override. Can you guide me?

Thanks,

Priyanka

[Ollie]

Hey, @itspriyanka.

Thanks for the quick response. 

Looking into this, you could potentially set a tax override for products by creating manual collections. For example, to charge 6% CGST and 6% SGST for a collection named 'Tax-12' in Delhi, you can update the tax settings for that collection accordingly. With that being said, overrides must be added for each region as needed. 

If you need further assistance with setting up the tax overrides using manual collections, I would suggest speaking with our live support by navigating to the Help Center. Once you arrive at the Help Center, you will need to make the virtual assistant be aware that you would like to Speak with support and you will be connected with a Support Advisor. 

Let us know if you have any questions. 

[s_ZOO]

hi plz help... while adding tax override ...i dont see option of " add another region to this override "..plz help?

[Emily]

Hi, @s_ZOO.

Thank you for your reply! 

You should be able to select the other region and then add the override to that region as well. 

[Mehakbansal]

Could you find a solutiuon to this

[info_vikasita]

Hi Priyanka,

Have you received a solution from Shopify support regarding this issue? I'm facing the same problem with my client, who has two different tax rates (12% and 18%) on their products.

If you haven’t found a solution, could you share any alternative method you've used to resolve it?

Looking forward to your response.

Thanks,
Vikasita Connect