---
url: /gst-manager-shopify/guides/tax-setup.md
description: >-
  Set Shopify's native tax rate to 0% so GST Manager can compute the correct
  CGST/SGST/IGST breakdown without charging tax twice at checkout.
---

# Configure Shopify taxes for GST Manager

GST Manager calculates GST directly from your product selling prices (MRP) and generates tax invoices with the exact CGST/SGST/IGST breakdown.

For this calculation to work correctly, **Shopify's native tax settings must be set to 0%**. If Shopify also charges tax, tax will be added twice at checkout and invoice amounts won't match.

![Setting Shopify region tax rates to 0%](/gst-manager-shopify/img/gst-manager-shopify-tax-setup-0percent.png)
*Shopify admin → Settings → Taxes and duties*

## Step-by-step setup

Follow these 5 steps in your Shopify admin:

### 1. Open tax settings

In Shopify admin, go to **Settings → Taxes and duties**.

### 2. Set all region rates to 0%

1. Under **Manage sales tax collection**, click **India** (or your active regions).
2. For every state or province listed, set the tax rate to **0%**.
3. If there are state-level overrides, ensure they are also set to **0%**.

### 3. Turn off global tax settings

Scroll down to the **Global settings** section and uncheck these options:

* Uncheck **"Include sales tax in product price and shipping rate"**
* Uncheck **"Charge tax on shipping rates"**

Click **Save** at the top right.

### 4. Verify with a test draft order

1. In Shopify admin, go to **Orders → Create order**.
2. Add any product and select a customer.
3. Check the **Taxes** line item — it must show **₹0.00**.
4. Discard the draft order once verified.

### 5. Check the GST Manager dashboard

1. Go to **Apps → GST Manager**.
2. Look at the **Setup Health** card.
3. Confirm you see a green checkmark next to **"Shopify taxes configured for GST Manager"**.

::: tip Setup Health helper
If anything is misconfigured, the Setup Health card on your dashboard will display an alert with a direct link to the exact Shopify setting that needs adjustment.
:::

## How shipping tax works

Since product prices are tax-inclusive:

* Do **not** enable Shopify's native "Charge tax on shipping rates" toggle.
* If you need to charge GST on shipping, turn on **Apply GST to shipping charges** under **Apps → GST Manager → Settings → Tax Configuration**.
* The app will automatically add shipping as a separate taxable line on the generated invoice with its SAC code (default: `9968`).

## Related pages

* [Requirements](/gst-manager-shopify/requirements) — store prerequisites
* [Quick setup wizard](/gst-manager-shopify/guides/onboarding) — the initial onboarding flow
* [Invoices & credit notes](/gst-manager-shopify/features/invoices) — how tax invoices are generated
* [Troubleshooting](/gst-manager-shopify/troubleshooting) — resolving tax calculation issues