01What each one means
- CGST: Central GST, collected by the Centre.
- SGST: State GST, collected by the State.
- UTGST: Union Territory GST, used instead of SGST in some union territories.
- IGST: Integrated GST, charged on inter-state supplies and imports.
02The simple rule
| Supplier and place of supply | Charge |
|---|---|
| Same state | CGST + SGST (half each) |
| Different states | IGST (full rate) |
03Example 1: within Delhi
A Delhi business sells services worth ₹10,000 at 18% to a Delhi client. It charges 9% CGST (₹900) + 9% SGST (₹900). Total ₹11,800.
04Example 2: Delhi to Maharashtra
The same sale to a client in Mumbai attracts 18% IGST (₹1,800). Total is still ₹11,800, but the tax goes to a different head.
05Let software decide
SuperForge compares your state with the buyer's place of supply and applies CGST + SGST or IGST automatically on every invoice.
06Questions
When is IGST charged?
On inter-state supplies, where the supplier and place of supply are in different states, and on imports.
Is the total tax different for IGST?
No. The rate is the same; only how it's split and who collects it changes.
This article is general information, not tax or legal advice. GST rules change; confirm details with your chartered accountant or the official GST portal.
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