Tax

Accounting & Taxes
1

I’m facing an issue with GST reporting on my store. For orders placed within the same state, the invoices and reports should ideally reflect CGST and SGST. However, in my Shopify reports, these transactions are currently being recorded under IGST, which is incorrect.

2

@deraille,

Shopify’s default India tax configuration only sets up CGST+SGST for one state . All other states are configured to use IGST by default, even for intrastate orders. This means if your business is in, say, Maharashtra, intrastate orders will incorrectly show IGST unless you manually reconfigure.

The Fix: Reconfigure Your State Tax Settings

You need to update your tax settings so that your home state uses CGST + SGST (additive), while all other states use IGST (instead of federal tax). Here’s the pattern using Maharashtra as an example:

  • Country tax (CGST): Set to half the applicable GST rate (e.g., 14% for 28% GST)

  • Your home state (SGST): Set to the same rate as CGST, behavior = added to federal tax, name = SGST

  • All other states (IGST): Set to the full GST rate, behavior = instead of federal tax, name = IGST

  • Karnataka: Also needs to be reconfigured to IGST if it’s not your home state (it defaults to SGST)

Steps in Shopify Admin:

  1. Go to Settings > Taxes and duties

  2. Click on India

  3. Update the Country tax rate to half your applicable GST rate and label it CGST

  4. In Regions, find your home state, set it to the other half rate, name it SGST, behavior = added to federal tax

  5. For all other states (including Karnataka if not your home state), set to full rate, name IGST, behavior = instead of federal tax

Note

  • Shopify cannot split a single tax line into two separate CGST/SGST line items on the invoice, it shows the combined amount under one label. For fully GST-compliant invoices with separate CGST/SGST line items, you’ll need a third-party GST invoicing app.

  • Always validate with a local tax consultant before going live.

3

This usually comes down to how Shopify is determining the place of supply, not the GST logic itself.

If intra state orders are showing as IGST instead of CGST + SGST, it typically means Shopify thinks the transaction is inter state even if it shouldn’t be.

Here are the key areas to check:

1. Store Address vs Fulfillment Location

Shopify calculates tax based on your fulfillment location, not just your store address.

Go to Settings → Locations

Make sure your primary fulfillment location is:

In the correct state

Has the correct GST registered address

If your location state customer shipping state → Shopify will apply IGST.