---
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

GST Manager classifies every invoice and applies the right tax treatment automatically — you never pick it per order. It decides from three inputs: your **home state**, the **customer's state**, and whether the customer holds a **GSTIN**.

::: info The four classes
**B2B-intra** — customer has a GSTIN and is in your home state.
**B2B-inter** — customer has a GSTIN but is in a different state.
**B2C** — 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

| Input | Decides |
| --- | --- |
| Customer **GSTIN** (valid = B2B, none = B2C) | Business vs consumer. See [GSTIN validation](/gst-manager-acellemail/guides/gstin-validation). |
| **Home state** vs **customer's state** | Same → intra-state (**CGST + SGST**); different → inter-state (**IGST**). |
| Billing country outside India (or non-INR, no country) | **Export** — no Indian tax. |

Set your home state once under **Setup → Company & Tax**; every invoice inherits it.

## How the tax is calculated

Total GST = invoice **subtotal × configured rate ÷ 100**, then split by class:

| Class | Tax lines |
| --- | --- |
| **B2B-intra** / **B2C in your state** | Equal **CGST + SGST**. |
| **B2B-inter** / **B2C in another state** | Single **IGST**. |
| **Export** / any **zero-subtotal** invoice | No GST applied. |

Each invoice also shows a **Place of supply**, so the treatment is visible on the document.

## Getting it right

Two settings do all the work — both under **Setup → Company & Tax**:

1. Set your **home state** accurately (matched against the Indian states registry; drives CGST/SGST-vs-IGST).
2. 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)