GST on Shopify in India: tax settings, HSN codes and invoice apps (2026)

Shopify will calculate GST on your Indian orders, but it will not give you a GST-compliant invoice. You set the rates under Settings, Taxes and duties, store the HSN code on each product, turn on tax-inclusive pricing, and then install an invoice app (free to about $5/mo to start) that prints Rule 46 invoices. E-invoicing only kicks in for B2B invoices once your turnover has crossed ₹5 crore.

That's the short answer. The longer one matters because GST mistakes on Shopify are quiet. Orders go through, money arrives, and the problem only shows up when your CA tries to file GSTR-1 and the invoice numbers, HSN codes and state splits don't line up.

If you're still working out what the platform itself costs, start with my Shopify pricing in India hub. This post is about the tax side once the store exists.

What does Shopify actually do for GST, and what doesn't it do?

Shopify's India GST FAQ is short and honest about the limits. Here's the split as I explain it to clients:

The line I quote to every new founder is from that FAQ: Shopify "doesn't create a GST-compliant bill." It also doesn't file or remit tax for you. Treat Shopify as the cash register and your invoice app plus your CA as the tax department.

How do I set up GST in Shopify admin for India?

The setup lives in Settings, then Taxes and duties. Shopify's India FAQ describes the defaults: 9% CGST at the country level, 18% IGST for most states, and 9% SGST for your home state (its example uses Karnataka). Those defaults assume everything you sell is 18%. Very few D2C catalogues are that simple.

The order I follow on a new store:

1. Add your business address so Shopify knows your home state. Intra-state orders get CGST plus SGST. Inter-state orders get IGST.
2. Set the base rate to the rate most of your catalogue uses.
3. Create tax overrides for the exceptions. Shopify applies overrides by collection, so I make one hidden collection per GST slab (for example "GST 5%") and put the matching products in it. Shopify's FAQ walks through exactly this pattern.
4. Turn on tax-inclusive pricing (more on that below).
5. Place two test orders: one to an address in your own state, one to another state. Check that the first shows CGST plus SGST and the second shows IGST at the right total.

Apparel is where this bites. Since 22 September 2025, garments up to ₹2,500 per piece are taxed at 5%, and above ₹2,500 per piece at 18%. A store with a ₹1,999 kurta and a ₹3,499 kurta needs two different rates in the same category. Collection overrides handle that if you set them up by price band.

Where do HSN codes go in Shopify?

Per Shopify's FAQ, the HSN code goes in the HS tariff code field in the Shipping section of each product page. Invoice apps read it from there. If your code is shorter than the field wants, or you need it per variant, Shopify suggests metafields or tags.

How many digits you need depends on turnover. The CBIC rule since 1 April 2021:

I fill 6 or 8 digits from day one anyway. It costs nothing, your invoice app can print them, and you won't have to redo the catalogue the year you cross ₹5 crore.

Should Indian Shopify prices include GST?

Yes, for almost every D2C store. Indian shoppers expect the price on the product page to be the price they pay. To switch it on: Settings, Taxes and duties, "Include sales tax in product price and shipping rate", Save.

Shopify then backs the tax out of the displayed price with Tax = (Rate × Price) / (1 + Rate), and still shows the tax as a separate line. On a ₹1,050 product at 5%, the tax is ₹50 and the taxable value is ₹1,000.

Note the wording covers shipping too. If you charge ₹99 shipping, GST is being backed out of that as well. Ask your CA how they want shipping treated on your invoices before you go live.

What must a GST invoice contain?

Rule 46 of the CGST Rules sets the fields. CBIC's own taxpayer flyer lists 16 particulars, and "only applicable fields are to be filled." For a D2C order, these are the ones that matter:

• Your name, address and GSTIN
• A consecutive serial number, unique for the financial year (letters, numbers, hyphen and slash allowed)
• Date of issue
• Buyer's name, address and GSTIN if they're registered (this is where B2B orders differ)
• For unregistered buyers, name, address, delivery address and state code when the taxable value is ₹50,000 or more
• HSN code
• Description, quantity and unit
• Total value, and taxable value after discount
• Tax rate and tax amount, split into central, state or integrated tax (and cess if any)
• Place of supply with state name, for inter-state sales
• Delivery address if different from place of supply
• Whether tax is payable on reverse charge
• Signature or digital signature (not required on an electronic invoice issued under the IT Act)

Two practical notes. First, the serial number is why your Shopify order number (#1001) usually isn't enough as an invoice number: it doesn't reset each financial year, and cancelled orders leave gaps. Good invoice apps run their own numbering series. Second, the flyer also says an invoice need not be issued for supplies under ₹200 in specified conditions. For a typical Shopify order, just issue one every time.

Which GST invoice apps work on Shopify in India?

I checked these listings on the Shopify App Store in October 2026. Prices are the developers' and change often, so confirm on the listing before you install.

My default for a new Indian store is WebPlanex. It has the most reviews by a distance, it handles credit notes for returns, and its higher plans cover e-invoicing if you grow into it. If you're doing under 50 orders a month and want to start at zero, India GST App's free tier is fine. Whichever you pick, set the invoice number prefix and starting number before your first real order, not after.

An app is not the only route. Larger brands often skip the invoice app and sync orders into Zoho Books or Tally, which then generate the invoices. That makes sense once you have an accountant working inside those tools daily.

When does e-invoicing apply to a Shopify store?

E-invoicing means registering each invoice on the government's Invoice Registration Portal (IRP) and getting an IRN and QR code back. Current rules:

The e-invoice portal describes itself as the system "for uploading all the B2B invoices." So a pure D2C store selling only to consumers does not generate IRNs for those orders, even above ₹5 crore. The catch is the B2B order you forget about: a corporate gifting order, a reseller, a café buying your coffee in bulk. Once you're over ₹5 crore, those need an IRN, and an app or accounting tool that talks to the IRP.

What about COD, gateways and GST together?

Search data tells me people often ask about payment gateway, COD and GST setup as one question, so here's how they connect.

• Gateway fees carry GST. Razorpay's standard pricing is 2% per transaction plus 18% GST on that fee. If you're GST-registered, that GST is usually claimable as input tax credit.
• Shopify's third-party fee (2% on Basic, 1% on Grow, 0.6% on Advanced) applies to prepaid gateway orders. Shopify Payments isn't available in India, so every Indian store pays it on prepaid orders. Shopify's help docs say you aren't charged third-party transaction fees for manual payment methods like COD.
• COD orders still need a GST invoice. The tax point doesn't wait for the cash. Your invoice app should issue the invoice when the order ships, whatever the payment method.
• Returns and RTO need credit notes. When a delivered order is returned, issue a credit note against the original invoice so your GSTR-1 nets it out. This is the step most small stores skip.

The full plan-and-fee picture is on my Shopify pricing in India page, and the gateway comparison is in Shopify payment gateways in India.

What I'd do on a new Indian store

This is the sequence I run before launch, and it takes about half a day:

1. Get GST registration sorted with a CA first. Shopify's FAQ lists inter-state supply as a trigger, and a D2C store ships everywhere.
2. Configure Taxes and duties with your home state, base rate and one hidden override collection per slab.
3. Turn on tax-inclusive pricing.
4. Fill HSN codes (6 digits minimum) in the HS tariff code field for every product. A CSV import does this in minutes.
5. Install the invoice app, set the numbering series for this financial year, and add your GSTIN, address and signature image.
6. Place an intra-state and an inter-state test order. Send both invoices to your CA and ask "would you file from this?"
7. Turn on automatic invoice emails so customers get the PDF without asking.

The CA check in step 6 is the one I won't skip. A rate override pointing at the wrong collection is easy to miss in admin and very visible on a GSTR-1.

Want this set up properly?

GST setup, invoice apps, gateway and COD configuration are part of most store builds I do for Indian D2C brands. If you want it done once and done right, tell me about your store on the intake form. Rates for this kind of work are on my Shopify developer rates page.

Related reads

• Shopify Payments, COD and GST in India: the wider payments setup.
• Shopify transaction fees in India, explained: what each order costs you.
• Shopify payment gateway comparison for India: Razorpay, PayU, Cashfree and others side by side.
• Can you sell on Shopify in India without GST?: gateways, KYC and the inter-state rule.

Sources

• Shopify Help Center: GST in India FAQ
• Shopify Help Center: Including taxes in prices
• Shopify Help Center: Manual payment methods
• Shopify India pricing
• CBIC / GST Council: Tax Invoice and other such instruments in GST (flyer, Rule 46 particulars)
• GST Council: Notification 10/2019-Central Tax (₹40 lakh threshold for goods)
• Business Standard: 6-digit HSN mandatory above ₹5 crore turnover (Notification 78/2020)
• GST e-Invoice System portal
• GST e-Invoice portal: Revised time limit for e-invoice reporting, AATO ₹10 crore and above
• All India Radio News: GST on readymade garments up to ₹2,500 cut to 5% from 22 September 2025
• TaxGuru: GST on garments above ₹2,500 raised to 18%
• Razorpay pricing
• Shopify App Store: WebPlanex GST Invoice India
• Shopify App Store: Sleek GST Invoices ‑ India
• Shopify App Store: India GST App
• Shopify App Store: Advanced Invoices/GST App