CGST + SGST or IGST: which applies?
Updated · Sources linked below
The rule in one table
| Your state vs place of supply | Tax to charge | Example at 18% |
|---|---|---|
| Same state | CGST + SGST | 9% CGST + 9% SGST |
| Different state | IGST | 18% IGST |
| Union territory without a legislature (same UT) | CGST + UTGST | 9% + 9% |
| Export (outside India) | IGST, or none under LUT | 18% IGST or 0% |
What is the place of supply?
For goods, the place of supply is usually where the goods are delivered, the end of their movement. For most services to a registered business, it's the buyer's registered location; to a consumer, it's usually their address.
- Goods sold in Mumbai and delivered in Pune: both Maharashtra, so CGST + SGST.
- Goods sold from Mumbai and delivered to Bengaluru: IGST.
- Consulting by a Delhi firm for a Gurugram company: Delhi to Haryana, so IGST.
What goes wrong
If you charge the wrong type, the buyer can't use the credit and you may have to pay the right tax again and claim a refund of the wrong one. Check the state code: the first two digits of a GSTIN tell you the buyer's state.
Questions people also ask
Is the total tax different between CGST + SGST and IGST?
No. The total rate is the same; IGST is the full rate, while CGST and SGST split it in half.
How do I know the buyer's state?
From the place of delivery, or the first two digits of their GSTIN: 27 is Maharashtra, 29 Karnataka, 07 Delhi.
Which tax applies to online services sold to consumers in another state?
Usually IGST, because the place of supply is the consumer's address in the other state.
What if I charged CGST + SGST instead of IGST?
Pay the correct IGST and claim a refund of the wrongly paid CGST and SGST; issue a credit note and a fresh invoice if needed.
Official sources
This guide explains the rules in plain words; it isn't legal or tax advice. Rules change, so check the sources or ask a Chartered Accountant for your situation.
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