How to set IGST SGST CGST in shopify GST Settings

August 02, 2020
Dinesh MJ
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HOW TO SET IGST SGST CGST IN SHOPIFY GST SETTINGS:

Its been while all the small startup that we work with coming up this complicated yet simple doubt about setting GST slab in the columns of taxes under Shopify.
So we took some time to write

Shopify is an amazing e-commerce engine that leverages doing an e-commerce business at a breeze.
But at the same time – Shopify is used worldwide so one might find the words complicated which are not any different.

For setting TAXES under Shopify Engine in India

1. Go to settings.
2. Select TAXES option
3. Under TAX REGIONS. You will get INDIA
4. then on the “EDIT” Option that is available parallel to INDIA.
5. Under TAXES column of INDIA

You will see words like ” COUNTRY TAX, FEDERAL TAX and so on”

Country Tax:
Country tax is nothing but tax applicable for a particular product in compliance to the country’s tax system.

Federal Tax:
Federal tax is just another name for the country tax to understand. which is not any different but a different word used in the columns for country tax

HOW TO SET CGST, SGST AND IGST FOR THE T-SHIRTS IN SHOPIFY:

Before which you should know what is CGST, SGST & IGST and how can I apply it on the invoices generated.

CGST & SGST – Intra state tax:

CGST – basically in INDIA “its central government’s share of tax that people pay”
SGST – basically in INDIA “its state government’s share of tax that people pay”

For Tshirts having MRP less than ₹999 is GST 5% SLAB

so,
the break up of CGST is 2.5%
the break up of SGST is 2.5%

IGST – Interstate tax: INTEGRATED TAX
For other states – IGST of 5% Applies.

As I said before country tax and federal tax option in Shopify has the same meaning.

Now you got to understand,

1. Added to % of federal tax  – Added to the existing tax bracket
Lets say if you have set the country tax to 2.5% – Then if you select ” ADDED TO 2.5% OF FEDERAL TAX”

It basically means you are adding 2.5% + 2.5% as the total tax.

2. Instead of  % of federal tax
Lets say if you have set the country tax to 2.5% – then if you select “INSTEAD OF 2.5% OF FEDERAL TAX”

It basically means that you are not applying the general country tax ( Say 2.5 %) but a new tax % that you have mentioned columns for each states

NOW LET’S SEE HOW TO EXACTLY SET TAXES FOR MY T-SHIRTS IN SHOPIFY:

Let’s say – I am doing a t-shirt business in “NAMMA BENGALURU:)”  – When I tend to invoice for all the orders inside KARNATAKA
Then CGST & SGST has to be applied

SET COUNTRY TAX TO 2.5%


FOR KARNATAKA:
THE CHOSEN AND MY REGISTERED GST BILLING STATE IS KARNATAKA

If you notice, only with state you are operating – SGST will be shown.

FOR REST OF THE STATES:
FOR OTHER STATES APART FROM KARNATAKA: IGST HAS TO BE APPLIED

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