---
url: /gst-manager-acellemail/features/gst-classification.md
description: >-
  How GST Manager classifies every AcelleMail invoice as B2B-intra, B2B-inter,
  B2C or Export, and splits the tax into CGST+SGST or IGST automatically.
---

# GST classification

Every time an invoice is rendered, GST Manager works out *what kind* of sale it is and applies the
right tax treatment for you. You don't pick this by hand on each order — the plugin decides it from
three things it already knows: your **home state**, the **customer's state**, and whether the
customer holds a **GSTIN** (their 15-character GST registration number). Getting those three inputs
right is all you need to do; the classification and the CGST/SGST-vs-IGST split follow
automatically.

::: info The four classes
**B2B-intra** — the customer has a GSTIN and is in your home state.
**B2B-inter** — the customer has a GSTIN but is in a different state.
**B2C** — the customer has no GSTIN (an end consumer).
**Export** — a sale outside India. A non-INR invoice with no billing country resolves to **Export**
automatically.
:::

![How an invoice is classified](/gst-manager-acellemail/img/gst-gst-classification-classes.png)
*GST Manager → Dashboard → Invoice classification*

## What drives each outcome

The customer's **GSTIN** is what separates business (B2B) from consumer (B2C) sales. When a
customer enters a valid GSTIN on their contact page, the invoice becomes B2B; with no GSTIN it is
B2C. See [GSTIN validation](/gst-manager-acellemail/guides/gstin-validation) for how that field is
captured and checked.

Your **home state** versus the **customer's state** is what decides the tax *split*. When both
sides are in the same state the supply is intra-state (**CGST + SGST**); when they differ it is
inter-state (**IGST**). That is why your home state matters even though it never appears as an
option per order — set it once under **Setup → Company & Tax** and every invoice inherits it.

For sales outside India, the invoice is treated as an **Export**. Non-INR invoices that have no
billing country are resolved to Export for you, so foreign-currency customers don't accidentally
pick up Indian tax.

## How the tax is calculated

The total GST is simply the invoice **subtotal × the configured rate ÷ 100**. That amount is then
split according to the class:

* **B2B-intra / B2C in your state** → split into equal **CGST + SGST** lines.
* **B2B-inter / B2C in another state** → a single **IGST** line.
* **Export** and any **zero-subtotal** invoice → no GST is applied at all.

Each invoice also shows a **Place of supply**, so the tax treatment is visible on the document
itself and lines up with what you file.

## Getting it right

Two settings do all the work. First, set your **home state** accurately under **Setup → Company &
Tax** — this is matched against the Indian states registry and is what CGST/SGST-vs-IGST hinges on.
Second, make sure customers can enter their **GSTIN** so business sales are recognised as B2B. Walk
through both in [Configure GST](/gst-manager-acellemail/guides/configure-gst).

## Related pages

* [Configure GST](/gst-manager-acellemail/guides/configure-gst)
* [GSTIN validation](/gst-manager-acellemail/guides/gstin-validation)
* [Invoice PDF](/gst-manager-acellemail/features/invoice-pdf)