WooCommerce GST Setup and Invoices: A Guide for Indian Online Stores

On this page

1. CGST and SGST vs IGST
2. Step 1: Enable taxes in WooCommerce
3. Step 2: Create tax classes for each GST rate
4. Step 3: Add tax rates
5. Step 4: GST-compliant invoices
6. Step 5: Collect GSTIN from business buyers
7. Shipping and tax
8. Reports for filing

If you sell online in India and are registered under GST, your WooCommerce store needs to calculate tax correctly and issue proper invoices. WooCommerce can handle this, but it needs setting up. This guide covers the website side; for tax rates and legal requirements specific to your products, always confirm with your chartered accountant.

CGST and SGST vs IGST

• Intra-state sale (customer in the same state as you): tax is split into CGST and SGST
• Inter-state sale (customer in another state): IGST applies

For most online sales to consumers, the place of supply is the delivery address, so your store must calculate tax based on the customer's shipping state.

Step 1: Enable taxes in WooCommerce

• WooCommerce → Settings → General: enable tax rates and calculations
• In the Tax tab, set "Calculate tax based on" to the customer shipping address
• Decide whether prices are entered inclusive of tax. Most Indian consumer stores show tax-inclusive prices

Step 2: Create tax classes for each GST rate

Different products can fall under different GST rates. Create a tax class for each rate you use, then assign the correct class to each product. Your CA can confirm the right HSN codes and rates for your products.

Step 3: Add tax rates

• For your home state: add CGST and SGST as two separate rates (each half of the total rate)
• For all other states: add IGST at the full rate
• Name them clearly so they show correctly on orders and invoices

Test with orders to your own state and another state to confirm the split is right.

Step 4: GST-compliant invoices

WooCommerce doesn't create GST invoices by default. A PDF invoice plugin (such as PDF Invoices & Packing Slips for WooCommerce) can be configured or extended to include the required details, typically:

• Your business name, address and GSTIN
• A unique, consecutive invoice number for the financial year
• Invoice date
• Customer name and address, and GSTIN for business customers
• HSN or SAC codes, description, quantity and value
• Taxable value, tax rate and amount split into CGST/SGST or IGST
• Place of supply

Confirm the exact invoice format with your CA, especially if e-invoicing rules apply to your turnover.

Step 5: Collect GSTIN from business buyers

If you sell to businesses, add an optional GSTIN field at checkout so they can claim input tax credit. Validate the format to avoid typos.

Shipping and tax

Decide with your CA how shipping charges should be taxed, and configure WooCommerce's shipping tax class accordingly. See WooCommerce shipping setup for India.

Reports for filing

Your accountant will need sales data by tax rate and state. Export orders regularly, or use a reporting plugin that summarises tax collected. Keep invoices organised by financial year.

Setting up a new store? See the WooCommerce launch checklist and accepting online payments in India.