Easy way to Setup Indian GST ( CGST, SGST & IGST ) correctly on your Woo-Commerce Store?

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One of the important steps which you take while setting up a woocommerce store is setting up taxes (CGST, SGST & IGST) for your products. Let’s learn how to do it in the most compelling way.

hello everyone. If you are running an online business store, it is very important to configure the taxes to your e-commerce store or if you are Developer developing the client’s project then it is very important to follow the taxes 

Let’s understand the Indian tax structure briefly

  • The Indian govt. follows the GST  type tax system which is known as Goods service tax where you will see SGST, CGST, and IGST type taxes based on the location of the customer in the country.
  • CGST and SGST should be charged for transactions within the same state.
  • IGST will only be applicable for transactions within two different states.
  • If you are selling outside the county you should not charge any tax to the customers.

for example, if the store is located in Hyderabad and customer orders from Hyderabad the cart will assign SGST(9%) and CGST(9%) and if the customer orders from other states then the cart will assign IGST(18%) that is based on the location of the customer.

The tax will be based on what product the customer is ordering. it can be 18% or 28% to apply to a woo-commerce store.

Setting up GSTs (CGST, SGST & IGST)

First, we need to login to the WordPress admin dashboard and if you are following our Woo-Commerce series we have installed the Woo-Commerce plugin, premade template, and also added the product. after that Go to “Woo-Commerce”, click on the “settings” click on the “tax” tab also under it you can see the tax classes like ‘standard rates’, ‘reduced rates’, and ‘zero rates’.

we have already configured these tax classes you can see in my previous article so in this one, we are looking for Indian Gst so just click on the standard rates and there you can find all the options below 

For the demonstration, if your store is located in Hyderabad(Telangana state). Now it is time to add the tax rates to the particular tax classes (SGST, CGST & IGST) and click on the insert row where you can see the 

  • Country code
  • State code
  • postcode/zip
  • City
  • Rate %
  • Tax name
  • Priority
  • Compound
  • shipping

In the first one for configuring IGST enter the country code. Then select the state and zip code according to the location where you want to sell. You can also enter *(default) so that it will select all for IGST enter the * in the state, zip code, and * in the city. It will select all the state’s postcodes and cities with a set percentage of tax (18%) and enter the tax name as IGST and you can set priority (2) always give the store location state(SGST) first priority and you can also enable the compound and shipping options as per your need.

Similarly, you can set the SGST and IGST as the above. first, you need to select another row click on the “insert” row, and fill the setting for both SGST(9%) and IGST(9%) will be the same except the priority. so for the demo store in Hyderabad let’s fill IN for county code and TS for Telangana state. so all the Cities of the Telangana state will be covered in this tax class. also set the 9% for SGST and 9% CGST for tax slab for state and central GST and enter *(default).

For postcode and city give the priority 1 to SGST and 2 for CGST and you can also enable the compound and shipping options as per your need and click on “save changes” to complete the process.

I hope you found this article helpful and if you have any doubts then, please feel free to reach out to us at support@gwizacademy.com

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