FINBIZTOOLS
CGST vs SGST vs IGST Explained
Applicable financial year: conceptual guide; no year-specific rates or tax eligibility asserted. Reviewed: 2026-09-18. Last updated: 2026-09-18. Check current official rules before applying this guidance.
Last reviewed: 18 September 2026. Place-of-supply rules contain exceptions; verify the current law for the transaction.
CGST, SGST or UTGST, and IGST are components of India’s GST framework. Which component applies depends broadly on whether a supply is intra-state or inter-state, determined using the supplier’s location and the legally determined place of supply.
CGST and SGST or UTGST
For a typical intra-state supply, central tax and the applicable state or Union territory tax are charged as separate components. If an illustrative total GST rate is 18%, a simple intra-state example may display 9% CGST and 9% SGST. The combined tax remains 18%.
IGST
For a typical inter-state supply, integrated tax is charged. At the same illustrative total rate, the example would display 18% IGST rather than splitting it into central and state components.
Why place of supply matters
The customer’s mailing address alone does not always settle the result. GST law contains place-of-supply rules and special cases, including certain imports, exports and supplies involving Special Economic Zones. A general calculator therefore asks the user to choose intra-state or inter-state instead of deciding it automatically.
Calculation examples
On a taxable value of ₹10,000 at an illustrative 18% rate, total GST is ₹1,800. A simplified intra-state display divides that into ₹900 CGST and ₹900 SGST. A simplified inter-state display shows ₹1,800 IGST. Rounding and transaction-specific rules may affect an actual invoice.
Try the calculation
Use the GST Calculator to compare the arithmetic, then use the GST Invoice Generator only after verifying the applicable treatment and invoice particulars.
Official references
CBIC explains the broad distinction in its GST FAQs. Sections 7 and 8 of the IGST Act published by CBIC set out inter-state and intra-state supply rules.
Tax disclaimer
Examples are simplified educational arithmetic, not a determination of place of supply or tax liability.
Components are alternatives in the illustration
For one taxable supply, the simplified calculator displays either a central-plus-state or Union-territory split, or an integrated-tax amount. It does not add all components together. The applicable treatment follows the legally determined nature of the supply, not whichever option produces a preferred result.
Why addresses alone may be insufficient
Billing, delivery and registration addresses can be relevant facts, but place-of-supply provisions vary by the kind of supply and may contain special rules. Imports, exports, supplies involving Special Economic Zones and certain services require particular care. The calculator therefore requires a user selection and does not infer legal treatment from an address.
Record and review
Keep the information supporting the chosen treatment and ensure invoice components reconcile with the total rate. Use official CBIC material and current law when the place of supply is uncertain. The example amounts illustrate the split only and do not establish tax liability.