Tax configuration - India
How do I configure taxes for India?
Taxes for India must be added manually. Head to Configuration > Taxes > India > Manually add tax rates.
When you're setting up your taxes for India we require you to configure rates for the Central Goods and Services Tax (CGST), your State Goods and Service Tax (SGST) and any form of Cess tax.
This can also be overridden by configuring additional state GST rates; simply locate the state from the drop-down and type the relevant GSTIN number, as well as the other tax details outlined.
To determine if CGST or SGST is applicable, it is important to know if the transaction is intra-state or an inter-state supply.
Intra State
When a sale takes place within the same state or union territory, both SGST/UTGST and CSGT will be levied.
Inter State
When a sale takes place between two different states or union territories, IGST which is a combination of CGST and SGST will levied. This is collected by the central government.
If the sale is made outside of India then GST should not be applied, as it is considered an export.
Updated almost 3 years ago