Everything You Need To Know About Shopify India Taxes Rates

Everything You Need To Know About Shopify India Taxes Rates

By Softpulse Infotech, September 23rd, 2021

Nowadays, eCommerce is the fastest growing market in the world, and the Goods and Services Tax (GST) is a part of it. On July 1 2017 India has passed a GST that replaces all other state and central taxes levied by Indian businesses. 

This short guide answers all of your question about sales tax store based in India and also help you to setup the taxes perfectly.

Intra-state sales are transactions carried out within one federal state (e.g. Maharashtra). Inter-state sales are those transactions that happen in between states (e.g. selling from Maharashtra to Goa).

How to set up taxes on Shopify

To set up your Shopify tax simply follow these steps:

To set up tax rates, go to your Shopify store on the Settings > Taxes page in your Shopify admin.

Special Note:

If you do not see India in the list of countries in the Tax rates list, you will need to add it as a shipping zone first.

Check the countries in the Tax rates list and if you don’t see India in the countries list, you will need to add yourself as a shipping first zone. Follow these steps on how to add shipping first zone.

  • Simply go to Setting > Shipping > Shipping profiles and click Create a new profile.
  • Click Create Shipping zone and select India.

Now you are eligible to set up taxes rates for each state, go to Settings > Taxes and check India included in the tax rates list. So now have to start setting up tax rates for India.

  1. Go to Settings > Taxes in your Shopify admin and click on India.
  2. Enter the 9% CGST tax rate into the Country Tax field.
  3. For the state your store is based in, add the SGST (or UTGST) rate and choose to add to 9% federal tax from the drop-down.
  4. For all other states, add the IGST rate and choose instead of 9% federal tax from the drop-down. 

Different Tax Rates and Why Ue?

Want to add tax overrides Scroll down to Tax overrides Go to Settings > Taxes in your Shopify admin and click India, scroll down to Tax overrides, If you sell products that are taxed at different tax rates that time tax overrides help you.

Shopify does not automatically apply GST to transactions in India, therefore, you must use a third-party app. Shopify India stores have their own featured apps specific to Indian business, such as COD (cash on delivery) verification in India.

The Indian E-commerce market is expected to expand to US$ 111.40 billion by 2025 from US$ 46.2 billion as of 2020 and Shopify has grown so successful because of its good ability to provide an easy-to-navigate, easy-build website platform that offers everything you need to grow a successful business. Its ability to integrate with hundreds of apps, including third-party ones specific to Indian businesses, taxes, and other regulations, makes it an even better choice for businesses of all sizes in India.



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