• November 25, 2022

Since the GST went into force on July 1st, 2017, it is crucial to compute it. The Goods and Services Tax (GST) is an indirect tax on providing goods and services. GST is the unified system that is now applied in many countries. GST calculation in invoices is one of the important aspects of any eCommerce

Let’s have a brief idea of the GST

GST is the tax that is applied to the total price that customers must pay when purchasing any goods from a store

The government then receives this sum.

GST is an indirect tax that is used by replacing other taxes like service tax, VAT, etc. This tax was adopted in parliament on March 29, 2017, and implemented on July 1, 2017.

Types of GST

  1. Central Goods and Services Tax (CGST),
  2. State Goods and Services Tax (SGST)
  3. Integrated Goods and Services Tax (IGST)
  4. Union Territory Goods and Services Tax (UGST).

How does GST work?

  • Service provider –

In this instance, both the product’s purchase price and the value added to it will be subject to GST payment obligations on the service provider’s end.

The overall quantity of GST has to be paid. However, it could also be reduced by manufacturer tax payment.

  • Manufacturer

Manufacturers require raw materials for manufacturing. On the purchase of raw materials, the manufacturer has to pay GST.

  • Retailer – 

 They need to pay GST for the purchase of products from the distributor along with the margin that is added. 

  • Consumer – 

Consumers need to pay GST on the purchased product. 

What is WooCommerce?

WordPress has an e-commerce plugin called WooCommerce. With fair levels of customization and several essential features like inventory and tax administration, secure payments, and shipping integration, it makes setting up and running an online business simple. 

Below are a few features of Woocommerce. 

  • WordPress Integration
  • Open-source development platform
  • Flexibility
  • Invoice generation
  • SEO advantage 
  • Customization

GST for eCommerce sellers 

E-commerce sellers are people who conduct business online or through e-commerce platforms. Every e-commerce seller must register for GST. Regardless of who owns the websites and the products supplied, the person operating the store needs to do GST registration for E-commerce.

The process for GST registration for Ecommerce is simple and completed online. 

Step-by-Step Guide for Setting Up GST for Sales Invoices in WooCommerce

WooCommerce won’t create invoices for you automatically. You have to follow a few steps for Woocommerce GST configuration for sales invoice. 

Step I – GST Configuration on WooCommerce

In order to access the WP dashboard settings, we must first log in to WordPress with our username and password.

Go to general in the Woo commerce settings and select Enable TAX rate and calculation.

Check the Tax tab and set the setting as price entered with TAX and Price entered without the Tax value. If you want to see the original price you can enable the option of price including Tax.

There is a selection named standard rate under the Tax tab. An import CSV file can be found there. Click here to upload a file.

Step II – Download the CSV file 

This CSV file includes the code and the tax rate while taking the shop’s location into account. For the SGST, CGST, IGST, etc., there is a separate column in this choice. You can choose the option based on the kind of GST. By establishing priorities, you can categorize tax percentages.

Here, GST has been successfully added to the website. 

Steps for multiple GST/IGST slabs 

This process is applicable to products with a range of prices.

Your products will be subject to a separate GST range if it falls under a different price range and categories. Like GST rate for luxurious item would be 28% whereas 5% GST rate is applicable mostly to household items. 

Example – Let’s take the example. 

If there are two distinct products in the cart and the GST costs for each item vary.

Let’s assume a cart contains two items, one of which is subject to the 12% GST rate (for example, processed food) and the other of which is subject to the 18% GST rate.

Check the one-by-one steps.

Step I – Based on the cart item select the shipping Tax class.

Step II – Next, specify a new tax.

Step III – Set it up.

For a large number of products go to each product in the cart. Edit the product and add the tax class.

Let’s discuss the benefits of WooCommerce PDF Invoice

  • Maintain transaction record

The most important resource you may have is the right knowledge. Even if your online store is performing well, facts can help you gain perspective and maximize your store’s potential.

You can trace all of the orders with the use of an outstanding system provided by WooCommerce PDF invoice.

You will find it simple to determine who made the order and how much money was spent on it.

  • Faster and more accurate delivery

Every business strives to provide the greatest customer service while avoiding competition. WooCommerce PDF invoices are sent to the customer in PDF format when a certain order state is reached.

  • Accounting and insight

Woo commerce invoice makes it easier to precisely gather all the data. It will assist you in streamlining all accounting tasks and in keeping track of any ongoing payments. You can also include the tax rate in addition to this. As we previously stated, data is crucial and may provide you with insightful information about how things are going in your store and how you can make changes to improve your position.

Woo commerce is being used by numerous online stores to launch their operations fast and affordably. 

We offer a WooCommerce GST plugin

Using our WooCommerce GST plugin can help you advance your Woo commerce store. WooGST enables you to produce WooCommerce invoices for your shop. 

Our WooGST plugin offers a customization feature to customize the invoice by adding your logo, the name of the business, etc.

The features offered by WooGST include configuring GST settings. You can get a personalized invoice for your store using this function. Depending on your needs, you can easily add a single tax or multiple taxes with our WooGST plugin. You don’t need to do it manually because WooGST generates invoices automatically. You can overcome the above manual invoice procedure with our plugin.