CGST, SGST and IGST Explained (With Examples)

Every GST invoice shows either CGST + SGST or IGST. Which one you charge depends on where the supply takes place. Here is the rule, with worked examples.

The basic idea

GST in India is charged once, but shared between governments. On a supply within one state the tax is split equally into CGST (Central GST) and SGST (State GST). On a supply between states the whole tax is charged as IGST (Integrated GST), which is then shared between the Centre and the destination state.

Worked examples

In union territories without a legislature (such as Chandigarh, Ladakh and Lakshadweep), UTGST is charged instead of SGST.

What is “place of supply”?

The place of supply decides whether a sale is within a state or between states. For goods it is generally where the delivery ends; for most services it is generally the location of the recipient. Exports and supplies to special economic zones are treated as inter-state and are charged IGST (often under a letter of undertaking or with refund). The rules have exceptions, so confirm unusual cases with your accountant.

How to show it on the invoice

Show the taxable value, then the tax in separate lines — CGST and SGST for intra-state, IGST for inter-state — and print the place of supply with the state name and code. See the full GST invoice format, or use the free GST invoice generator which does the split for you.

Frequently asked questions

Can I charge CGST + SGST to a customer in another state?

No. Supplies between states are charged IGST. Charging the wrong tax can create problems when the customer claims input tax credit.

Is the rate different for IGST?

No. The total rate is the same. IGST at 18% equals CGST 9% plus SGST 9% in total.

What is UTGST?

The tax charged instead of SGST in union territories that have no legislature.