CGST vs SGST vs IGST: Which One Goes on Your Invoice?

One tax, three names

GST is a single tax, but who collects it depends on where the sale happens. The Centre collects CGST, the states collect SGST (or UTGST in union territories without a legislature), and IGST is collected by the Centre on sales between states and then shared.

You never charge all three. You charge either CGST plus SGST, or IGST alone.

Within the same state: CGST + SGST

When your business and the place of supply are in the same state, split the rate equally. On a ₹2,000 service at 18%, the invoice shows CGST 9% = ₹180 and SGST 9% = ₹180, a total tax of ₹360.

Between states: IGST

When the place of supply is in a different state, charge the full rate as IGST. The same ₹2,000 service to a client in another state carries IGST 18% = ₹360. The total tax is identical; only the label changes.

Exports and SEZ supplies

Exports and supplies to SEZ units are zero-rated. Most small exporters supply under a Letter of Undertaking (LUT) and print "Supply meant for export under LUT/bond without payment of IGST". Others pay IGST and claim a refund.

The common mistakes

These cause most rejected input tax credit claims:

• Using the billing address instead of the place of supply to choose the tax
• Charging CGST + SGST to a client in another state
• A GSTIN whose first two digits do not match the state
• Rounding each line differently from the totals so the invoice does not add up