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Glossary · GST & Billing

What is IGST, CGST & SGST?

IGST, CGST and SGST meaning and the difference between them — which tax applies on intra-state vs inter-state GST supplies, with an example.

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IGST, CGST & SGST — meaning

CGST and SGST are the central and state components of GST charged on intra-state (within one state) supplies, while IGST is charged on inter-state (between two states) supplies and imports.

What are CGST, SGST and IGST?

GST in India is a dual tax system. On a supply within the same state (intra-state), two components apply simultaneously: Central GST (CGST), collected by the central government, and State GST (SGST) (or Union Territory GST, UTGST, for union territories), collected by the respective state/UT government — together usually equal to the total GST rate for that supply. On a supply between two different states or union territories (inter-state), or on imports, a single tax called Integrated GST (IGST) applies instead, collected by the central government and later apportioned between centre and the destination state.

How they apply

  • Intra-state supply: CGST + SGST/UTGST are charged, each generally at half of the applicable overall GST rate for that good/service.
  • Inter-state supply (including imports): IGST is charged at the full applicable rate.
  • The place of supply rules under the IGST Act determine whether a transaction is treated as intra-state or inter-state.

Worked example

A Delhi-based seller sells goods worth ₹1,00,000 with an 18% GST rate to a buyer also in Delhi (intra-state): CGST @9% = ₹9,000 and SGST @9% = ₹9,000, total GST = ₹18,000.

If the same seller sells to a buyer in Maharashtra (inter-state): IGST @18% = ₹18,000 is charged as a single line, instead of splitting into CGST and SGST.

Common mistakes

  • Charging CGST+SGST on an inter-state supply, or IGST on an intra-state supply, due to incorrect place-of-supply determination.
  • Not checking the buyer's registered place of supply address when it differs from the shipping address.
  • Mixing up tax credits — CGST credit cannot generally be used to pay SGST liability, though both can be used, in a specified order, against IGST liability.

Sources

Last updated 2026-10-12.

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Related terms

Place of SupplyPlace of supply is the GST rule that determines the location treated as the destination of a supply, which decides whether CGST+SGST (intra-state) or IGST (inter-state) is charged.Tax InvoiceA GST tax invoice is the primary document a registered supplier issues for a taxable supply of goods or services, containing the prescribed details needed for GST compliance and the recipient's input tax credit.GSTINGSTIN (Goods and Services Tax Identification Number) is a unique 15-digit alphanumeric number assigned to every entity registered under GST.

IGST, CGST & SGST — FAQs

When is IGST charged instead of CGST and SGST?+

IGST is charged on inter-state supplies (between two different states/UTs) and on imports, while CGST and SGST/UTGST together apply on supplies within the same state or union territory.

Do CGST and SGST always add up to the same total rate as IGST?+

Typically yes — for the same good or service, CGST + SGST together equal the applicable IGST rate, though businesses should verify the applicable rate for their specific good/service on the GST rate finder.

Can CGST credit be used to pay SGST liability?+

No. Generally, CGST credit cannot be used to discharge SGST/UTGST liability and vice versa; both can, in a specified order, be used against IGST liability, as set out in the CGST/IGST Acts.

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