Regional Support: Taxes (India)

Victor
Shopify Staff
1174 105 261

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:

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 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.

Victor | Social Care @ Shopify 
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Replies 24 (24)
aegiscabs
New Member
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maltitos
Tourist
1 0 0

Hi, it is basically not much I want. I just want to delete the whole of my shopify account by currently I can't access my account because I am on the pause plan. I fear that you charge me money after my pause plan has expired. Help would be appreciated

Victor
Shopify Staff
1174 105 261

Hi @maltitos,

Thank you for reaching out. If you wish to close your store whilst on the Full Pause plan, you will need to choose a plan in order to gain access to the admin and close the store. If you do not wish to do this, I can send your store to our Accounts team and ask them to close it for you on your behalf. Please let me know how you wish to proceed.

Kind regards,

Victor | Shopify Social Care

Victor | Social Care @ Shopify 
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elestilo
Tourist
8 0 3

Dear @Victor,

Hope you are safe and doing good. I think you already posted tax related details in this community group. However I still have query on tax set up for the below questions,

I'm located and created Shopify store based on India and going to sell products only to USA as of now.

1) Shall I need to collect tax from customers in USA while purchasing in my site ? Or else I can make it(tax) as $0 ? (Products are sourced from USA, EU and few from China thru Third Party app)

Note that I'm not actually selling any goods physically from India as well as I didn't own any physical store/ware house in USA.

2) Shall I need to collect tax from customers in USA while purchasing in my site ? Or else I can make it(tax) as $0 ? (Products are sourced from India thru Third Party app)

Note that I'm not actually selling any goods physically from India rather I'm doing services I didn't own any physical store/ware house in India.

Store URL:  https://www.elestilo.store/

Password: 123

 

Please guide me your suggestion it is very much helpful for me and others like me

Victor
Shopify Staff
1174 105 261

Hi @elestilo,

Thank you for getting in touch with your question. In terms of collecting and remitting taxes in the locations you sell to, this largely depends on each country and region's tax laws, and whether or not you are deemed to have a tax nexus.

For example, in the USA, taxes are typically charged on the state level and each state will have their own laws regarding which businesses are required to charge tax to their customers and pay these taxes to the state. A tax nexus is typically defined by whether or not you have a physical presence in a state—such as an office or warehouse—but US states also have distance-selling nexus laws, meaning you may be required to charge sales taxes to customers in certain states even if you have no physical presence there. This sort of tax qualification is usually based on a number of orders made into a state, or a minimum amount of revenue generated by sales to customers in the state.

For the EU, businesses are typically required to register for Value-Added Tax (VAT) in an EU member state in order to collect sales taxes from customers. Even if you are not based in the EU, you may still be required to register for and remit VAT to the member states you wish to sell to—the laws and limits here are typically determined on a country-by-country basis. The different VAT distance-selling thresholds for EU member countries can be found on the Shopify Help Center.

In general, it would be my advice to consult the tax laws of every country you wish to sell your products to, and research whether or not you are required to charge your customers any form of sales tax. If you're unsure, I would recommend speaking to a dedicated tax lawyer who can offer professional advice on what your obligations are.

Kind regards,

Victor | Shopify Social Care

Victor | Social Care @ Shopify 
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elestilo
Tourist
8 0 3

@Victor Thankyou for your detailed suggestion. I'll check tax consultants regarding this.

If you know any tax consultant in US please share so that I can directly check with him.

Since I'm in India I have to google it for find a person. And again Thank you @Victor 

Victor
Shopify Staff
1174 105 261

Hi @elestilo,

No problem at all, and I'm glad I could help. I would recommend checking out the sales tax guidance section on our Shopify Experts directory to connect with professionals who can offer you advice.

Kind regards,

Victor | Shopify Social Care

Victor | Social Care @ Shopify 
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 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

Amythi
New Member
2 0 0

Thanks for the details. 

I have query on setting tax override on for different products with different tax rates.

Currently I have 2 different manual collections with following expected rates:

=> 1. saree: Require : SGST 2.5%+ CGST 2.5%

      2. Jewellery: Require: SGST 1.5%+ CGST 1.5% 

 But coudn't set to same.

Tried following steps:

1. Create 2 manual collections 1.saree 2.Jewellery

2. Goto Setting ->taxes->Manage[India]->set country rate to 2.5%

3. Add tax override->select collection saree->  set to 2.5%

With steps 1-3 I could set saree to expected behaviour.

4. Add tax override->select collection Jewellery ->1.5%

    But could not change country tax to 1.5%

    Now my tax for Jewellery is shown as 2.5%+1.5%= 4%

 

So my query is how can I change Country for collection to acheive the expected behaviour.

 

Thanks in Advance. 

 

 

Victor
Shopify Staff
1174 105 261

Hi @Amythi,

Thank you for reaching out and for detailing your situation. Can you tell me which state you are based in please? Does the incorrect tax amount occur both when making sales within your state, and when you sell to customers to another state? Or just one or the other?

Kind regards,

Victor | Shopify Social Care

Victor | Social Care @ Shopify 
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 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog