UTGST is the Union Territory GST. It replaces SGST for supplies within a Union Territory without its own legislature, paired with CGST in the same way.

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GST Guide · India

CGST vs SGST vs IGST: the difference, simply

Q: What is the difference between CGST, SGST and IGST?

For a sale within the same state, GST is split equally into CGST (central) and SGST (state). For a sale between two states, a single IGST (integrated) is charged at the full rate. The total tax is the same either way.

Q: When is IGST charged instead of CGST and SGST?

IGST applies to inter-state supplies — when the place of supply is in a different state from the seller — and to imports. Intra-state supplies attract CGST plus SGST.

GST is one tax, but it's collected in parts. Which parts depend on a single question: is the sale within your state or between two states? Get that right and CGST, SGST and IGST stop being confusing.

The one rule that decides everything

Look at where the goods or service is supplied compared to where you are:

Same state (intra-state)CGST + SGST

Different state (inter-state)IGST

Within a Union TerritoryCGST + UTGST

ImportsIGST

The total tax is identical in every case — only how it's split and who collects it changes.

CGST + SGST — sales within your state

CGST (Central GST) goes to the central government and SGST (State GST) goes to your state government. On an intra-state sale the GST is split equally between them.

Example: you sell a ₹10,000 service in Maharashtra to a Maharashtra customer at 18%. The ₹1,800 GST is split into ₹900 CGST + ₹900 SGST — i.e. 9% each. Both lines appear on your invoice.

IGST — sales between states

IGST (Integrated GST) is a single charge collected by the central government and later shared with the destination state. It applies when your customer is in a different state, and on imports.

Example: the same ₹10,000 service at 18%, but now billed from Maharashtra to a Karnataka customer. There's no CGST/SGST split — you charge a single ₹1,800 IGST. Same total, one line instead of two.

Why split it at all?

India's GST is a "dual" system so that both the Centre and the States keep a share of indirect tax revenue. Splitting intra-state GST into CGST and SGST gives each their portion directly. For inter-state trade, IGST keeps things simple at the point of sale, and the revenue is settled between governments behind the scenes — so businesses only ever deal with one figure across state lines.

How to know which applies

Find the place of supply. For most goods it's where they're delivered; for services there are specific rules.
Compare it to your location. Same state → intra-state. Different state → inter-state.
Pick the tax. Intra-state → CGST + SGST (split equally). Inter-state or import → IGST (full rate).

Place-of-supply rules have specific cases (e.g. certain services, e-commerce, and "bill to / ship to" situations). When in doubt, confirm with the official GST rules at gst.gov.in or your accountant before invoicing.

Frequently asked questions

What is the difference between CGST, SGST and IGST?

Within the same state, GST splits equally into CGST (central) and SGST (state). Between states, a single IGST is charged at the full rate. The total tax is the same either way.

When is IGST charged instead of CGST + SGST?

On inter-state supplies — when the place of supply is in a different state from the seller — and on imports.

Is the total GST higher for inter-state sales?

No. The total is identical; only the split changes — two lines (CGST + SGST) within a state, or one line (IGST) across states.

What is UTGST?

Union Territory GST — it replaces SGST for supplies inside a Union Territory without its own legislature, paired with CGST.

See the split instantly

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