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We have a magento2 setup for indian website. We allow customers to purchase including tax. Also we are charging some shipping amount from customers but this shipping amount is under GST of 18%. We need to caluculate GST for shipping amount only.How can i do that.

Product Cost : 500 ( Including GST 5% ) But when i added product to cart it needs to show as Product Cost : 475 GST (5%) : 25

Also For shipping Amount , We are charging Flat 50

We need to apply 18% GST for shipping amount

Final Cart will be displayed like this

Product Cost : 475

GST (5%) : 25

Shipping Cost : 50

Shipping Tax (18%) : 9

  • you need to use comment section for discussion, So delete your answer it is not a good practice as per the rule and regulation of magento stack exchange. if my answer works for you please mark my answer correct and upvote it so it helps other readers as well. – Muhammad Hasham Mar 18 at 5:35
  • A quick question. If i created a tax class "Shipping" and Created multiple rates like GST 5 , GST 10 , GST 12 , GST 18 and added under "Shipping" rule. Which GST tax will be applied to shipping amount in this case? All are with zipcodes of *. – Dinesh May 9 at 6:45
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Magento makes it simple for you.

Navigate to STORES > Settings > Configuration then expand the SALES panel and select Tax Expand the Tax Classes panel

enter image description here

In the Tax Class for Shipping drop-down menu you will want to select one of the following options:

  • “None”
  • “Taxable Goods”
  • “Shipping”
  • “Tax Exempt”

Expand the Calculation Settings panel

enter image description here

You’ll see that one of the fields is a Shipping Prices drop-down menu. This is where you can choose whether you would like to charge tax for shipping.

Expand the Default Tax Destination Calculation panel. This will determine the destination location for determining your tax rate.

enter image description here

  • Default Country
  • Default State
  • Default Post Code

Expand the Price Display Settings panel to determine how prices will be displayed in your store.

enter image description here

Display Product Prices In Catalog:

  • “Excluding Tax”
  • “Including Tax”
  • “Including and Excluding Tax”

Display Shipping Prices:

  • “Excluding Tax”
  • “Including Tax”
  • “Including and Excluding Tax”

Expand the Shopping Cart Display Settings` panel to determine how prices will be displayed in your shopping cart.

enter image description here

Display Prices:

  • “Excluding Tax”
  • “Including Tax”
  • “Including and Excluding Tax”

Display Subtotal:

  • “Excluding Tax”
  • “Including Tax”
  • “Including and Excluding Tax”

Display Shipping Amount:

  • “Excluding Tax”
  • “Including Tax”
  • “Including and Excluding Tax”

Include Tax in Order Total: “Yes” or “No”

Display Full Tax Summary: “Yes” or “No”

Display Zero Tax Subtotal: “Yes” or “No”

Expand the Orders, Invoices, Credit Memos Display Settings panel to edit how prices and taxes will be displayed on these documents. enter image description here

Expand the Fixed Product Taxes panel to enable this feature and edit how these things are displayed.magento fixed product taxes enter image description here

Enable FPT: “Yes” or “No”

Now, make certain to go to the upper right corner and “Save Config”.

I know the answer is very detailed one but I have to cover all aspects I hope this will help

  • I want to apply shipping amount to cart total based on product class. Lets say Product A , Product B having tax classes of 5 , 7 . Then we need to take highest tax class 7 and needs to apply it as shipping tax. How can i proceed? Any suggestions please? – Dinesh Mar 18 at 16:52
  • A quick question. If i created a tax class "Shipping" and Created multiple rates like GST 5 , GST 10 , GST 12 , GST 18 and added under "Shipping" rule. Which GST tax will be applied to shipping amount in this case? All are with zipcodes of *. – Dinesh May 2 at 9:11

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