WooCommerce GST Setup in India: Tax and Invoice Checklist

Most WooCommerce stores in India set up tax once, during launch, and then never look at it again - until the accountant raises questions at filing time. Wrong rates on some products, IGST charged on local orders, invoices without HSN codes, refunds with no credit notes: these small errors add up into real reconciliation headaches.

This checklist covers how to configure GST in WooCommerce and what your invoices should contain. It is written to help you have a better conversation with your chartered accountant - it is not tax advice. GST rules change through notifications and depend on your products and registration, so always confirm the final configuration with your CA.

Before you configure anything

Get these answers from your CA first:

• Are you registered under GST, and in which state(s)?
• What is the GST rate for each product category you sell?
• What HSN code applies to each product, and how many digits do you need to show? (This depends on your turnover.)
• Do you sell B2B as well as B2C? B2B buyers will want their GSTIN on the invoice to claim input tax credit.
• Does e-invoicing apply to you? This depends on your turnover and the type of supply.
• Do you sell internationally? Exports have separate treatment.

Write these down in a simple sheet: product category, HSN code, GST rate. This becomes the source of truth for your store setup.

Part 1: WooCommerce tax settings

Enable taxes and set the basics

In WooCommerce > Settings > General, enable tax rates and calculations. Then under the Tax tab:

1. Prices entered with tax: choose whether the prices you type in already include GST. Most B2C stores enter inclusive prices.
2. Calculate tax based on: choose the customer shipping address for physical goods, which aligns with the usual place-of-supply rule for delivered goods. Confirm with your CA.
3. Shipping tax class: decide how shipping charges are taxed - ask your CA, since this can follow the main product's rate.
4. Display prices in the shop and cart: usually "including tax" for B2C.
5. Price display suffix: something like "incl. GST" helps clarity.

Create tax classes for each GST rate

WooCommerce lets you create tax classes - one for each GST rate you use (for example, classes named after each applicable rate, plus an exempt class if needed). Assign each product to the right class.

Set rates by state: CGST + SGST vs IGST

This is where most stores go wrong. For each tax class, set rates so that:

• Orders shipped within your home state get CGST and SGST as two separate tax lines, each half of the total rate.
• Orders shipped to any other state get IGST at the full rate.

In WooCommerce, you do this by adding rate rows with country "IN" and the relevant state code. Your home state gets two rows (CGST and SGST, with different priorities so both apply). A row with no state specified - covering all other states - carries IGST. Naming the rates clearly ("CGST", "SGST", "IGST") makes them show properly on invoices.

Union territories

Supplies within certain union territories use UTGST instead of SGST. If your business or customers are in a union territory, ask your CA how to set this up.

Part 2: Product-level data

For every product (and variation, if rates differ):

| Field | Why it matters |
|---|---|
| Tax class | Applies the correct GST rate |
| HSN code | Required on invoices; stored as a custom field or plugin field |
| Weight | Affects shipping charges, which may also be taxed |
| SKU | Helps match invoices with inventory and accounting |
| Product type | Physical vs digital/service may need different treatment |

Bulk-editing with a CSV import is the fastest way to set tax classes and HSN codes on a large catalogue. Spot-check afterwards.

Part 3: What your GST invoice should contain

A GST tax invoice has prescribed contents. Typically these include:

• Supplier's name, address and GSTIN
• A unique, consecutive invoice number for the financial year
• Invoice date
• Recipient's name and address, and GSTIN for registered (B2B) buyers
• Place of supply with state name and code (for inter-state supplies)
• HSN code for goods
• Description, quantity and unit
• Taxable value after discounts
• Rate and amount of CGST, SGST/UTGST or IGST, shown separately
• Total invoice value
• Signature or digital signature of the supplier or authorised person

Your CA will confirm the exact fields required for your business. Make sure your invoice plugin can include all of them.

Part 4: Choosing an invoice solution

Several WooCommerce plugins generate PDF invoices, and some are built for Indian GST. When evaluating options, check:

• Can it show GSTIN, HSN codes and the CGST/SGST/IGST split per line?
• Does it support sequential invoice numbering that resets each financial year if your CA wants it?
• Can B2B buyers enter their GSTIN at checkout, and does it appear on the invoice?
• Does it generate credit notes for refunds and returns?
• Can it attach the invoice to order emails and let customers download it from My Account?
• Is it maintained and compatible with your WooCommerce version and HPOS?

If no plugin fits your process, a developer can build a custom invoice template or integrate WooCommerce with your accounting or GST software.

Part 5: Discounts, shipping and refunds

Discounts

Coupons should reduce the taxable value, with GST calculated on the discounted amount when the discount is shown on the invoice. Test a few coupon orders and check the invoice maths.

Shipping charges

If you charge for shipping, decide (with your CA) how GST applies and configure the shipping tax class accordingly.

Refunds and returns

When an order is refunded or a product is returned, you usually need a credit note that references the original invoice. Make sure partial refunds produce correct credit notes too.

Part 6: Monthly reconciliation and reporting

GST returns need accurate sales data split by rate and by state. Make this easy:

1. Export orders monthly with tax totals by rate and state.
2. Match totals with payment gateway settlements.
3. Share the report with your CA or sync it to your accounting software.

Automating this - for example, syncing WooCommerce orders to Tally or your accounting tool - saves hours of manual work. Our API integration and automation team often builds these connections.

Common GST mistakes on WooCommerce stores

These are the issues we find most often when reviewing Indian WooCommerce stores:

• One rate for everything. A single "standard" tax class applied to all products, even when categories carry different GST rates.
• IGST on local orders (or the reverse). Rate rows set up without state codes, so the split never changes.
• Tax calculated on the store address. Using the shop base address instead of the customer's shipping address for delivered goods.
• HSN codes missing from invoices. The codes exist in a spreadsheet but were never added to the products.
• Invoice numbers that skip or repeat. Using the WooCommerce order number as the invoice number, which can include cancelled or failed order IDs. Ask your CA whether separate invoice numbering is better for you.
• No credit notes. Refunds processed in the gateway dashboard without any matching document in the store.
• Plugin conflicts after updates. Invoice templates breaking silently after a WooCommerce update, so nobody notices for weeks.

Each of these is easy to fix once spotted, but much harder to untangle after several months of filings.

Quick audit checklist

| Check | Done? |
|---|---|
| CA has confirmed rates and HSN codes per category | |
| Tax classes created for each rate | |
| Home state: CGST + SGST rows; other states: IGST row | |
| Tax based on customer shipping address | |
| Every product has the correct tax class and HSN code | |
| Invoices show GSTIN, HSN, place of supply and tax split | |
| B2B buyers can add GSTIN at checkout | |
| Credit notes generated for refunds | |
| Monthly report reconciles with gateway settlements | |

Key takeaways

• Start with your CA: rates, HSN codes, registration and e-invoicing status.
• Configure CGST + SGST for home-state orders and IGST for other states.
• Store HSN codes and correct tax classes on every product.
• Use an invoice solution that supports GST fields, B2B GSTIN and credit notes.
• Reconcile monthly; automate exports to accounting where possible.

Tax setup is easy to get slightly wrong and painful to fix later. If you want your WooCommerce store's GST configuration reviewed or automated, our team can help. Explore our WooCommerce development and ecommerce website development services, or book a free consultation to discuss your setup.