CGST, SGST and IGST Explained With Simple Examples
GST in India has three main components. Which one applies depends on whether the sale happens within one state or across states.
The three types
| Type | Full form | When it applies | Goes to |
|---|---|---|---|
| CGST | Central GST | Sale within the same state | Central government |
| SGST | State GST | Sale within the same state | State government |
| IGST | Integrated GST | Sale to another state, imports and exports | Shared between Centre and destination state |
In Union Territories without a legislature, UTGST is used in place of SGST.
Examples at 18% GST on โน10,000
- Seller in Rajasthan, buyer in Rajasthan: CGST 9% = โน900 and SGST 9% = โน900. Total GST โน1,800.
- Seller in Rajasthan, buyer in Gujarat: IGST 18% = โน1,800.
The total tax is the same either way; only the split changes.
Place of supply
For goods, the place of supply is usually where the goods are delivered or where their movement ends. For services, it is generally the location of the recipient, with exceptions for services linked to land or events. If the supplier's state and the place of supply are different, charge IGST. Always show the place of supply with the state name on your invoice.
How to show it on your invoice
Show the taxable value, the rate and the tax amount separately for each tax. The buyer's GSTIN begins with a two-digit state code (for example 08 for Rajasthan, 24 for Gujarat), which tells you quickly whether a sale is intra-state or inter-state. Our GST invoice generator picks CGST+SGST or IGST for you when you select the type of supply. See also GST invoice format.
FAQs
Can I charge CGST, SGST and IGST on the same invoice?
No. For one supply, either CGST+SGST or IGST applies, not both.
Which GST applies if the customer is in another state but picks up the goods from my shop?
It depends on where the goods are delivered or their movement ends. Get advice from your CA for borderline cases.
Calculate any combination with the GST calculator, or read what is GST if you are just starting out.