Question 1

What GST setup does my Shopify store in India need?

Accepted Answer

An Indian D2C Shopify store needs: (1) GSTIN configured in Shopify Tax settings (Settings -> Taxes and duties -> India), (2) HSN code assigned per product (4-digit minimum, 6-digit for businesses above INR 5 Cr), (3) Auto-tax calculation - IGST 18 percent for interstate orders, CGST 9 percent + SGST 9 percent for intrastate, (4) Tax-inclusive vs tax-exclusive pricing (most D2C uses inclusive), (5) Invoice template with GSTIN, HSN, place of supply, IGST/CGST/SGST breakdown, (6) For B2B orders - collect buyer's GSTIN, generate ITC-claimable tax invoice, (7) For businesses above INR 5 Cr turnover - e-invoice via IRP with IRN and QR, (8) e-Way bill for orders above INR 50K, (9) GSTR-1 monthly sales summary, GSTR-3B return preparation, (10) Optional sync to Tally Prime / Zoho Books / Marg / Vyapar for accounting.

Question 2

How do HSN codes work on Shopify products in India?

Accepted Answer

HSN (Harmonized System of Nomenclature) codes classify products for GST. Every Shopify product sold in India needs an HSN code stored in metafields or product type. Requirements: (1) Businesses under INR 5 Cr - 4-digit HSN, (2) Businesses INR 5 Cr - 50 Cr - 6-digit HSN, (3) Businesses above INR 50 Cr - 8-digit HSN. Each HSN code maps to a GST rate (0, 5, 12, 18, or 28 percent). We assign HSN per SKU during setup, configure Shopify's tax overrides per HSN, and display HSN on invoices automatically. Common examples: footwear HSN 6403 / 18 percent, cotton clothing HSN 6109 / 5 percent (under INR 1,000) or 12 percent (above), packaged food HSN 2106 / 18 percent, books HSN 4901 / 0 percent.

Question 3

How does IGST vs CGST + SGST auto-calculation work?

Accepted Answer

GST type is determined by 'place of supply' rules: (1) Buyer in same state as seller (intrastate) - charge CGST 9 percent + SGST 9 percent (total 18 percent for typical D2C), (2) Buyer in different state (interstate) - charge IGST 18 percent (single tax, splits between centre and state later), (3) Buyer in another country (export) - zero-rated, no GST. Shopify reads buyer's shipping state from the address, compares to seller's registered state (your business state code from GSTIN), and applies the right combination. We configure this in Shopify Tax settings + verify via test orders to each state. The invoice shows the correct breakdown automatically.

Question 4

When do I need to generate e-invoice via IRP?

Accepted Answer

e-Invoicing is mandatory for businesses with aggregate annual turnover above INR 5 Cr (as of August 2023). Below this threshold it is optional but recommended. The flow: (1) Customer places order, Shopify generates draft invoice, (2) Invoice data is sent to GSTN's IRP (Invoice Registration Portal) via API, (3) IRP returns an IRN (Invoice Reference Number) and a digitally signed QR code, (4) Final invoice with IRN + QR is sent to customer + auto-recorded for GSTR-1. We integrate via apps like GST Hero, Tally Connect, or direct IRP API. e-Invoice eliminates manual reconciliation and is required for ITC claims by buyer.

Question 5

When do I need an e-way bill?

Accepted Answer

An e-way bill is required for movement of goods worth more than INR 50,000 (single consignment) within India. Generated via the GST portal or auto-triggered via Shipway / Shiprocket / Delhivery / Blue Dart integrations. Includes seller GSTIN, buyer GSTIN/details, HSN codes, vehicle number, transporter ID. Valid for 1 day per 200 km (typical). Failure to generate attracts penalty of INR 10K or tax-amount-equivalent, whichever higher. We auto-trigger e-way bill via Shiprocket on every dispatched order above the threshold.

Question 6

What is TCS and when does it apply?

Accepted Answer

TCS (Tax Collected at Source) under GST applies to e-commerce operators (marketplaces like Amazon, Flipkart) collecting 1 percent on payments to sellers. For D2C brands selling on their own Shopify store, TCS is generally not applicable - you are the seller of record, not an aggregator. However, TCS under Income Tax Act section 206C(1H) applies if your turnover crosses INR 10 Cr and you receive payment above INR 50L from a single buyer in a financial year - you collect 0.1 percent and deposit. We configure this in Shopify for B2B-heavy stores via custom checkout fields and accounting sync to Tally / Zoho / Marg.

Question 7

How does GSTR-1 and GSTR-3B work with Shopify?

Accepted Answer

GSTR-1 is your monthly outward supply (sales) return - filed by the 11th of next month. It contains every B2B invoice with buyer GSTIN, every B2C summary by state and rate, exports, credit notes, debit notes. GSTR-3B is the consolidated return - filed by the 20th of next month - showing total tax liability, ITC claimed, tax paid. Shopify does not file these for you, but we configure: (1) Sales report export in GSTR-1 format (CSV / Excel), (2) Sync via apps like GST Hero, Marg ERP, or Tally Connector for one-click filing prep, (3) B2B vs B2C segregation, (4) HSN summary report, (5) Reconciliation between Shopify GMV and GSTR-1 / 3B. Filing happens on the GST portal.

Question 8

Do I need GST registration to sell on Shopify in India?

Accepted Answer

Yes, GST registration is mandatory if: (1) Your aggregate annual turnover is above INR 40 Lakhs (INR 20 Lakhs for special-category states and services), (2) You sell interstate (any volume), (3) You sell on e-commerce marketplaces, (4) You're under reverse charge mechanism. For most Shopify D2C brands selling pan-India, you need GST registration regardless of turnover because you ship interstate. Composition scheme (1-6 percent flat tax, simpler returns) is available under INR 1.5 Cr turnover but you cannot sell interstate or collect ITC under composition. Most D2C brands stay on regular GST.

Question 9

How long does Shopify GST setup take?

Accepted Answer

Standard GST setup is 4 weeks for a new Shopify store or 2-3 weeks for an existing store adding GST compliance. Scope: GSTIN configuration, HSN code assignment per SKU (we audit your catalog and map HSN), IGST vs CGST/SGST auto-calculation, B2B invoice template with buyer GSTIN capture, B2C bill of supply, e-invoice via IRP integration (for INR 5 Cr+ turnover), e-way bill auto-trigger via Shiprocket, TCS handling for high-volume B2B, GSTR-1 / GSTR-3B export, Tally Prime / Zoho Books / Marg / Vyapar sync, RCM configuration. Catalogs above 500 SKUs add 1 week for HSN mapping. Complex builds with composition scheme migration, multi-state warehousing, or B2B Plus integration extend to 5-6 weeks.

GST Setup for Shopify

GST-Compliant Shopify Stores. Done Right.

Get GST Wrong. Lose Buyers + ITC + Sleep.

HSN Drives Everything

State Code = Tax Type

B2B Means GSTIN at Checkout

e-Invoice Is Now Mandatory

Thresholds, rates, deadlines

Everything Your Indian Shopify Store Needs.

HSN Quick Reference for Popular D2C Categories.

Our GST Setup Process

Common Questions From Indian Founders & CAs

Stop Reconciling GSTR-1 in Excel Every Month.

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