Setting up a Shopify store in India follows the same basic platform steps as anywhere else, but three local realities shape almost every decision along the way: Shopify Payments doesn’t operate in India, so you need a third-party gateway like Razorpay; GST applies once your turnover crosses the registration threshold; and Cash on Delivery still drives a large share of Indian ecommerce orders, which affects your shipping and reconciliation setup.
This checklist walks through what to configure, in order, so you’re not bolting on payments, tax, or COD after the store already looks finished — which is where most avoidable launch problems happen.
Before You Start: Business and Tax Basics
- Decide your business structure (sole proprietorship, partnership, or private limited) — this affects what documents you’ll need for GST and payment gateway approval.
- Register for GST, even below the mandatory turnover threshold if you plan to grow. GST registration is free through the government portal and typically takes one to two weeks, and it’s often required by payment gateways to open a business account, not just for tax compliance.
- Open a current bank account in your business name — most payment gateways require this rather than a personal savings account.
- Keep your PAN, Aadhaar, and address proof ready, since these are commonly needed for both GST registration and payment gateway KYC.
Store and Domain Setup
- Pick a Shopify plan. Indian pricing runs from a Basic tier suited to new stores up through higher tiers for growing revenue. The transaction fee on third-party gateways (since Shopify Payments isn’t available in India) is typically higher on lower-tier plans, so it’s worth checking current plan pricing and fee structures before committing, especially once your monthly revenue grows.
- Buy and connect your domain, ideally a
.comor.inmatching your brand name. - Choose a theme suited to your product type, and check it renders well on mobile before customizing further — most Indian ecommerce traffic is mobile-first, often on mid-range Android devices over 4G rather than desktop.
- Set up core pages: About, Contact, Shipping Policy, Return/Refund Policy, and Privacy Policy. These matter for both customer trust and payment gateway approval.
Payment Gateway Setup (Razorpay and Alternatives)
- Connect an India-supported payment gateway. Razorpay is the most widely adopted among Indian Shopify stores, with native integration covering UPI, net banking, cards, wallets, and EMI options. Cashfree and PayU are common alternatives with similar coverage.
- Complete gateway KYC, which will typically require your GSTIN, PAN, and bank account details.
- Enable UPI specifically — a large share of Indian buyers pay via UPI apps like Google Pay, PhonePe, and Paytm, so this isn’t optional the way it might be in other markets.
- Test the payment flow in the gateway’s test/sandbox mode before going live, using test card numbers and a test UPI transaction.
Setting Up Cash on Delivery (COD)
- Enable COD as a manual payment method in Shopify (Settings → Payments → Manual payment methods → Cash on Delivery). It will appear alongside your online payment gateway at checkout.
- Make COD availability visible before checkout — many Indian buyers abandon a purchase if they’re unsure COD is offered, so a visible badge near the Add to Cart button helps.
- Plan for COD reconciliation. COD orders sit as “payment pending” in Shopify Admin until your shipping partner confirms collection and remits the cash to your account, which typically takes a few business days after delivery.
- Factor in return-to-origin (RTO) costs. COD orders have a meaningfully higher non-delivery and return rate than prepaid orders, so budget for this rather than treating it as a rare exception.
GST and Tax Configuration
- Add your GSTIN in Shopify’s tax settings so it appears correctly on customer invoices.
- Configure GST rates for your products, and confirm Shopify is splitting them correctly — CGST plus SGST for orders within the same state, and IGST for orders shipped to a different state.
- Install a GST invoice app if your default Shopify invoice doesn’t generate a fully compliant tax invoice — the platform’s checkout tax settings and your invoicing needs are two separate things to configure.
- Double-check whether displayed prices are inclusive or exclusive of GST. A common setup error is showing prices without GST at checkout, which causes a mismatch between what a customer expects and the invoice they receive.
Shipping and Fulfillment
- Connect a shipping aggregator such as Shiprocket or Delhivery, which handle courier selection, tracking, and COD remittance in one integration rather than managing multiple couriers manually.
- Set accurate serviceable pin codes, since courier coverage varies, especially for COD in smaller towns.
- Configure shipping rates — flat rate, free shipping above a threshold, or weight-based, depending on your margins.
- Set up order and shipping notifications, including WhatsApp updates if your aggregator or a separate app supports it, since Indian customers frequently expect delivery updates on WhatsApp rather than only email.
Pre-Launch Testing Checklist
Before accepting real orders, test the full purchase flow rather than just checking that the store looks complete:
- Place a test order using Razorpay’s sandbox mode and confirm it shows as “Paid” in Shopify Admin with a confirmation email sent.
- Place a test COD order and confirm it shows as “Payment pending,” tagged correctly, with COD instructions in the confirmation email.
- Verify the correct GST amount appears as a line item at checkout for your products.
- Check that shipping rates and serviceable pin codes are working as expected.
- Test the entire checkout flow on an actual mobile device, not just a desktop browser.
- Confirm your Shipping, Return/Refund, and Privacy pages are linked and accessible from checkout.
Skipping this step is a common mistake — starting ad campaigns before verifying that Razorpay, COD, and GST are actually working correctly can mean paid clicks converting to purchases that fail silently or create compliance issues later.
Frequently Asked Questions
Q1. Can I use Shopify Payments in India?
No. Shopify Payments isn’t available in India, so Indian merchants connect a third-party gateway such as Razorpay, Cashfree, or PayU instead, and pay a transaction fee on top of the gateway’s own charges.
Q2. Do I need GST registration to sell on Shopify in India?
It depends on your turnover, but many sellers register even below the mandatory threshold, since most payment gateways require a GSTIN to open a business account regardless of your revenue level.
Q3. Is Cash on Delivery necessary for an Indian Shopify store?
For most new stores without established brand recognition, yes — COD commonly represents a significant share of orders, particularly in Tier 2 and Tier 3 cities, and skipping it can mean losing a large portion of potential customers.
Q4. How long does GST registration take?
Registration is free through the government GST portal and typically takes one to two weeks, provided your PAN, Aadhaar, bank details, and business address proof are ready.
Q5. What’s the biggest mistake Indian Shopify sellers make at launch?
Launching ads or marketing before fully testing the payment, COD, and GST flow end to end. A broken checkout step discovered after ad spend has already gone out is a costly way to find configuration errors.
Conclusion
A Shopify store built for Indian buyers needs more than a good theme and product photos — it needs Razorpay or an equivalent gateway properly configured, GST set up correctly on both checkout and invoices, and COD available with realistic expectations about reconciliation and RTO costs. Working through this checklist before launch, and specifically testing the full purchase flow rather than just how the store looks, avoids the most common and costly setup mistakes Indian sellers run into.
