GST on Shopify isn't complicated once it's set up correctly — but Shopify doesn't configure Indian tax rules automatically, and I've inherited more than one store where this was never set up at all.
The basics Shopify needs from you
- Your GSTIN, added to your store settings so it appears correctly on customer-facing invoices.
- Tax rates by product category, since different product types (apparel under a certain price, for instance) can carry different GST slabs — this isn't one flat percentage across your whole catalogue.
- Tax-inclusive or tax-exclusive pricing decided upfront, since switching this after you've listed hundreds of products is a genuinely tedious fix later.
Invoicing customers correctly
Customers — especially boutique and wholesale buyers — increasingly expect a proper GST invoice, not just an order confirmation email. Getting this right means your invoice template shows your GSTIN, a correct tax breakdown, and your registered business address, generated automatically per order rather than created by hand each time.
Common setup mistakes
- One flat tax rate for every product. This either overcharges customers on some items or underpays tax on others — both create problems eventually.
- GSTIN missing from invoices. A surprisingly common gap that makes your store look less credible to business buyers who need the invoice for their own records.
- No separation between interstate and intrastate tax. IGST versus CGST/SGST needs to be handled correctly depending on where the order ships, not assumed to be the same everywhere.
Where to get this checked
I set up GST correctly as a standard part of every Shopify store and ecommerce website I build, with GST-ready invoices generated automatically on every order. If you already have a store and aren't sure your tax settings are correct, send me a message and I'll take a look before it becomes a compliance problem.