CGST vs SGST vs IGST: the difference, simply
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:
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).
CGST, SGST, IGST and UTGST: full forms
| Short form | Full form | Charged on | Who collects it |
|---|---|---|---|
| CGST | Central Goods and Services Tax | Supplies within one state | Central government |
| SGST | State Goods and Services Tax | Supplies within one state | That state’s government |
| UTGST | Union Territory Goods and Services Tax | Supplies within a Union Territory without its own legislature | Union Territory administration |
| IGST | Integrated Goods and Services Tax | Supplies between states, imports and supplies to SEZs | Central government, then shared with the destination state |
CGST vs SGST vs IGST at each GST rate
The rate is the same whichever tax applies; only the split changes. On a taxable value of ₹10,000:
| GST rate | Intra-state: CGST + SGST | Inter-state: IGST | Total GST |
|---|---|---|---|
| 5% | 2.5% + 2.5% = ₹250 + ₹250 | 5% = ₹500 | ₹500 |
| 18% | 9% + 9% = ₹900 + ₹900 | 18% = ₹1,800 | ₹1,800 |
| 40% | 20% + 20% = ₹2,000 + ₹2,000 | 40% = ₹4,000 | ₹4,000 |
| 3% (gold, silver) | 1.5% + 1.5% = ₹150 + ₹150 | 3% = ₹300 | ₹300 |
Can IGST be charged within the same state?
Normally no. When the supplier and the place of supply are in the same state, the invoice must show CGST and SGST, not IGST. The main exception is a supply to a unit or developer in a Special Economic Zone (SEZ): it is treated as an inter-state supply even when the SEZ is in the same state, so IGST applies. Exports are also treated as inter-state. If IGST is charged by mistake on an intra-state sale (or the other way round), the wrong tax has to be paid correctly and a refund claimed for the tax paid under the wrong head, so it is worth getting the place of supply right on the first invoice.
GST vs IGST: is IGST a different tax?
IGST is not an extra tax on top of GST. “GST” is the overall tax; IGST is the form it takes on inter-state supplies, just as CGST + SGST is the form it takes inside one state. A ₹10,000 sale at 18% carries ₹1,800 of GST in both cases. The difference matters for input tax credit: IGST credit is used first against IGST, then against CGST and SGST, while CGST credit cannot be used to pay SGST and vice versa.
Frequently asked questions
What is the difference between CGST, SGST and IGST?
When is IGST charged instead of CGST + SGST?
Is the total GST higher for inter-state sales?
What is UTGST?
Can CGST and SGST be different rates?
What is the full form of IGST, CGST and SGST?
Is IGST charged for a sale in the same state?
What is the difference between IGST and CGST?
See the split instantly
Written and maintained by Mantu Kumar
Mantu runs small online businesses from Navi Mumbai and built bydigital for the GST sums he needed every week. He checks each calculator against the CGST Act, GST Council decisions and worked examples. He is not a chartered accountant, so results are estimates and the pages tell you when to confirm with one.
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