CGST, SGST and IGST explained with examples
Updated 22 October 2026 · 4 min read
GST is one tax, but on an invoice it is split differently depending on where your customer is. Here is how to tell which to charge, with numbers.
The simple rule
- Seller and place of supply in the same state → charge CGST + SGST, each half of the GST rate.
- Seller and place of supply in different states → charge IGST at the full rate.
- In union territories without their own legislature (such as Chandigarh or Ladakh), UTGST takes the place of SGST.
Worked example: ₹10,000 of goods at 18% GST
| Same state (Kolkata → Kolkata) | Different state (Kolkata → Mumbai) | |
|---|---|---|
| Taxable value | ₹10,000 | ₹10,000 |
| CGST 9% | ₹900 | — |
| SGST 9% | ₹900 | — |
| IGST 18% | — | ₹1,800 |
| Invoice total | ₹11,800 | ₹11,800 |
The customer pays the same total either way. What changes is which government the tax goes to — and which input credit your customer can claim.
How to know the place of supply
For goods, the place of supply is usually where the goods are delivered. The first two digits of your customer's GSTIN tell you their state (see the GST state code list).
Common questions
Is IGST more expensive than CGST + SGST?+
No. IGST equals CGST + SGST together; only the split and the receiving government change.
Can I charge IGST to a customer in my own state?+
Not for a normal intra-state sale — that should be CGST + SGST. Charging the wrong one has to be corrected with a credit note and a fresh invoice.
What is UTGST?+
The union territory part of GST, used instead of SGST in union territories without their own legislature.
Sources
This guide is general information, not legal or tax advice. Rules change; confirm with your CA or the official notification.
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