Basics5 min read

CGST, SGST, and IGST explained with examples

GST is a single tax, but it is collected in parts so that both the central and state governments receive their share. Those parts are CGST, SGST (or UTGST), and IGST.

Knowing which to charge comes down to one question: are the supplier and customer in the same state or different states?

What each tax means

  • CGST (Central GST): the central government's share on an intra-state supply.
  • SGST (State GST): the state government's share on an intra-state supply. UTGST applies in union territories without a legislature.
  • IGST (Integrated GST): a single tax on inter-state supplies and imports, collected by the centre and shared with the destination state.

Intra-state supply (same state)

When the place of supply is in the supplier's own state, the total GST is split equally into CGST and SGST.

Example: a ₹10,000 sale at 18% within Karnataka → ₹900 CGST + ₹900 SGST = ₹1,800 total GST, invoice total ₹11,800.

Inter-state supply (different states)

When the supplier and customer are in different states, you charge IGST at the full rate instead of splitting it.

Example: the same ₹10,000 sale at 18% from Karnataka to Tamil Nadu → ₹1,800 IGST, invoice total ₹11,800. The total tax is identical; only the heads change.

Why the split matters

Charging the wrong head (CGST/SGST instead of IGST or vice-versa) is a common error that complicates your customer's input tax credit and your own return. Determining the place of supply correctly fixes this.

Key takeaways

  • Same state → CGST + SGST (each half the rate).
  • Different states → IGST (the full rate as one line).
  • The total tax is the same either way — only the heads differ.
  • Place of supply decides the split.

This guide is general information, not tax advice. GST rules and rates can change with GST Council notifications — verify specifics on the official GST portal or with your CA.

Put this into practice with PocketGST

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FAQ

CGST, SGST, and IGST explained with examples — FAQs

Is IGST higher than CGST + SGST?+

No. IGST equals CGST + SGST for the same rate. At 18%, IGST is 18% and CGST + SGST is 9% + 9%.

What is UTGST?+

UTGST is the union-territory equivalent of SGST, charged on supplies within union territories that do not have their own legislature.

How do I split CGST and SGST automatically?+

Use the PocketGST GST calculator or app — it detects intra vs inter-state and applies the right split for you.