CGST vs SGST vs IGST – Complete Difference & Rules
A comprehensive guide to understanding Central GST, State GST, and Integrated GST in India. Learn when each applies, how they are calculated, and how place of supply works.
CGST
Central Goods and Services Tax
Collected by the Central Government on intrastate supplies (sales within the same state). It is always charged in combination with SGST.
SGST / UTGST
State / Union Territory GST
Collected by the State Government or Union Territory on intrastate supplies. Goes directly into state treasury accounts.
IGST
Integrated Goods and Services Tax
Collected by the Central Government on interstate supplies (sales across state borders) and imported goods. Later apportioned between Center and Destination State.
Detailed Comparison: CGST vs SGST vs IGST
| Feature | CGST | SGST | IGST |
|---|---|---|---|
| Full Name | Central Goods and Services Tax | State Goods and Services Tax | Integrated Goods and Services Tax |
| Levying Authority | Central Government of India | State Government / Union Territory | Central Government (Shared with State) |
| Applicability | Intrastate transactions (Within same state) | Intrastate transactions (Within same state) | Interstate transactions (Between 2 states) & Imports/Exports |
| Rate Split Example (18% Slab) | 9% (Half of total rate) | 9% (Half of total rate) | 18% (Full rate applied) |
| Input Tax Credit (ITC) Setoff Order | First against CGST, then IGST (Never SGST) | First against SGST, then IGST (Never CGST) | First against IGST, then CGST, then SGST |
Scenario 1: Intrastate Product Supply (Same State)
An electronics manufacturer in Bengaluru, Karnataka sells 20 units of Computer Monitors (HSN: 8471) to a retail store in Mysuru, Karnataka for ₹1,00,000 (GST rate: 18%).
Scenario 2: Interstate Product Supply (Different States)
An electronics manufacturer in Bengaluru, Karnataka sells 20 units of Computer Monitors (HSN: 8471) to a distributor in Mumbai, Maharashtra for ₹1,00,000 (GST rate: 18%).
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Frequently Asked Questions
How do I know whether to charge CGST + SGST or IGST?
It depends entirely on the Place of Supply relative to your Location of Supplier. If the supplier and the place of supply are in the same state (e.g. Mumbai seller selling to Pune buyer), charge CGST + SGST in equal halves. If they are in different states (e.g. Mumbai seller selling to Delhi buyer), charge IGST.
What is UTGST?
UTGST stands for Union Territory Goods and Services Tax. It applies in place of SGST for transactions occurring within Union Territories without a legislature (e.g., Chandigarh, Ladakh, Andaman & Nicobar, Daman & Diu, Lakshadweep).
Can CGST credit be used to pay SGST liability?
No. Under GST rules, cross-utilization of CGST credit against SGST liability (and vice versa) is strictly prohibited. However, both CGST and SGST can be set off against IGST liability.
Does InvoiceKhata calculate CGST, SGST, and IGST automatically?
Yes! InvoiceKhata compares your business state code with your client’s state code. It automatically applies either CGST + SGST or IGST without requiring manual calculations.