CGST + SGST or IGST: which one applies to your invoice?
Short answer: If the supplier's state and the place of supply are the same, charge CGST + SGST (half the GST rate each, e.g. 9% + 9% for 18%). If they are different states, charge IGST at the full rate (18%). Exports are zero-rated: under an LUT no IGST is charged.
GST in India has three parts. Which ones appear on an invoice depends on where the supplier is and the place of supply.
| Situation | Tax on the invoice | Example: Rs. 10,000 at 18% |
|---|---|---|
| Supplier and place of supply in the same state | CGST + SGST | Rs. 900 CGST + Rs. 900 SGST |
| Different states | IGST | Rs. 1,800 IGST |
| Union Territory without legislature | CGST + UTGST | Rs. 900 + Rs. 900 |
| Export of goods or services | Zero-rated (IGST, or none under LUT) | Rs. 0 under LUT |
How to decide in three steps
- Find your state: the first two digits of your GSTIN are the state code (check with the GSTIN validator).
- Find the place of supply: for goods, usually where delivery ends; for services to a registered business, usually the recipient’s address.
- Same state means CGST + SGST; otherwise IGST.
The GST calculator shows the split for any amount, and the GST invoice generator applies it automatically from the two states you pick.
Common mistakes
- Charging CGST + SGST to an out-of-state buyer. The buyer cannot claim the credit correctly, and the invoice has to be corrected.
- Using the buyer’s billing address when the goods are delivered to another state.
- Forgetting to show the place of supply on inter-state invoices.
Free tools for this
Frequently asked questions
What is UTGST?
In Union Territories without their own legislature (for example Chandigarh or Ladakh), UTGST replaces SGST for intra-territory supplies.
Is the total tax different under IGST?
No. Rs. 10,000 at 18% is Rs. 1,800 tax either way: Rs. 900 CGST + Rs. 900 SGST, or Rs. 1,800 IGST.
Who decides the place of supply?
The GST law sets rules. For most goods it is where delivery ends; for most services to a registered business it is the recipient's location.