GST & tax
CGST vs SGST vs IGST
GST is one tax collected in different components. When you sell inside your own state, the rate is split equally between the centre (CGST) and the state (SGST or UTGST). When the sale crosses a state border, the whole rate is charged as a single integrated tax (IGST).
The customer pays the same amount either way. What changes is which lines appear on your invoice and which government receives the money.
Intra-state supply: CGST + SGST
If the place of supply is the same state as your GST registration, split the rate in half.
CGST = Taxable value × Rate ÷ 2 ÷ 100
SGST = CGST
Example. A Pune shop sells ₹20,000 of goods at 18% to a customer in Maharashtra: CGST ₹1,800 and SGST ₹1,800, total ₹23,600. Use the GST calculator in CGST + SGST mode to check both halves.
Inter-state supply: IGST
If the place of supply is another state or union territory, charge one integrated line at the full rate.
IGST = Taxable value × Rate ÷ 100
Example. The same Pune shop sells ₹20,000 at 18% to a buyer in Gujarat: IGST ₹3,600, total ₹23,600. The IGST calculator does this in one step.
Side-by-side comparison
| Intra-state | Inter-state | |
|---|---|---|
| Tax lines | CGST 9% + SGST 9% | IGST 18% |
| Amounts | ₹9,000 + ₹9,000 | ₹18,000 |
| Invoice total | ₹1,18,000 | ₹1,18,000 |
| Goes to | Centre and your state | Centre, then apportioned |
| Trigger | Place of supply in your state | Place of supply outside your state |
18% is the standard rate used in these examples. For the full current rate structure (0%, 5%, 18% and the 40% special rate), see GST 2.0: the new GST rates explained.
Mistakes that cause GST notices
- Charging CGST and SGST on an inter-state sale, or IGST on a local one. The total collected is right but the wrong government is credited, and the customer's input credit gets stuck.
- Using the customer's billing address when the place of supply rule points to the delivery location or the property location instead.
- Leaving out place of supply on the invoice: it is a required field for inter-state supplies.
- Splitting IGST into two halves on the invoice layout. IGST is always one line.
Our invoice generator switches between the CGST/SGST and IGST layout automatically from the place of supply you select, so the invoice matches the sale.