CGST + SGST vs IGST

Three GST tax names, one total rate — here is exactly when and why each applies.

🏙️

CGST + SGST

Central GST + State GST. Charged on intra-state supply (buyer and seller in the same state). Each is exactly half the total GST rate.

🌏

IGST

Integrated GST. Charged on inter-state supply (buyer in a different state) and imports. Equal to the full GST rate.

Feature	CGST + SGST	IGST
Applicable on	Intra-state supply	Inter-state supply + imports
Who collects	Central govt + State govt	Central govt only
Rate (example 18%)	CGST 9% + SGST 9%	IGST 18%
Goes to	Centre + Supplier state	Centre (then distributed)
ITC can be used for	Set off CGST or IGST	Set off CGST, SGST or IGST
E-commerce sellers	Customer in same state	Customer in different state
Services (online)	If customer same state	If customer different state

🏆 Verdict

Simple rule: if the billing address and your GSTIN are in the same state — charge CGST + SGST. If different states — charge IGST. For online services, the customer's location determines the place of supply.

Choose CGST + SGST when…

✓Selling goods to a customer in the same state.
✓Providing services where client is in the same state.
✓Retail store billing a local customer.

Choose IGST when…

✓Selling to a customer in another state.
✓Export of goods or services (zero-rated IGST).
✓Selling through an e-commerce platform to different-state customers.

Frequently Asked Questions

What if I accidentally charge CGST+SGST for an inter-state sale?

This is a compliance error. You would need to reverse the CGST+SGST entries and issue a revised invoice with IGST. Consult a CA for correction in GSTR-1.

Do restaurants charge CGST or IGST?

Restaurants charge CGST (2.5%) + SGST (2.5%) = 5% total, since the service is local (dine-in or delivery within the same state).

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