India operates under a dual GST structure where indirect taxation powers are shared between the Union (Central Government) and Individual States / Union Territories.

To support this dual structure, GST is categorized into three primary components:

  1. CGST (Central Goods and Services Tax)
  2. SGST (State Goods and Services Tax) / UTGST (Union Territory Goods and Services Tax) 3. IGST (Integrated Goods and Services Tax)

    1. CGST and SGST (Intra-State Transactions)

    When both the seller's registered address and the recipient's Place of Supply are within the same State or Union Territory:
    • The transaction is an Intra-State supply.
      • The total GST is divided equally: 50% CGST (goes to Central Government) and 50% SGST (goes to State Government).
        • Example: On an 18% slab item worth ₹10,000 in Bengaluru supplied to another firm in Bengaluru: - CGST @ 9% = ₹900 - SGST @ 9% = ₹900 - Total Tax = ₹1,800

          2. IGST (Inter-State Transactions)

          When the seller's location and the recipient's Place of Supply are in different states or UTs:
          • The transaction is an Inter-State supply.
            • The Central Government collects IGST at the full statutory rate (18%), and later apportions the appropriate share to the destination state.
              • Example: On an 18% slab item worth ₹10,000 supplied from Maharashtra to Delhi: - IGST @ 18% = ₹1,800 - CGST = ₹0 - SGST = ₹0

                3. UTGST for Union Territories Without Legislature

                For transactions within Union Territories that do not have their own state legislative assembly (such as Chandigarh, Lakshadweep, Ladakh, Daman & Diu, Andaman & Nicobar), UTGST replaces SGST.

                Our Free GST Invoice Generator handles this automatically: toggle between "CGST + SGST" and "IGST" with one click.