CGST, SGST or IGST — which one goes on your invoice?
Why there are three kinds of GST
GST is shared between the Centre and the States. For a sale inside one state, the Centre collects Central GST (CGST) and that state collects State GST (SGST, or UTGST in a Union Territory). For a sale from one state to another, the Centre collects Integrated GST (IGST) and later settles the state's share.
How to decide: the place of supply
The deciding factor is the place of supply. For most goods it is where delivery ends. For most services to a registered business, it is the customer's registered location. Compare it with your own registered state:
- Same state → intra-state supply → CGST + SGST.
- Different state → inter-state supply → IGST.
- Export or supply to an SEZ → treated as inter-state (zero-rated rules apply).
Worked example at 18%
A printing business in Lucknow (Uttar Pradesh) bills ₹12,000 before tax.
| Customer in Kanpur (UP) | Customer in Pune (MH) | |
|---|---|---|
| Taxable value | ₹12,000.00 | ₹12,000.00 |
| CGST 9% | ₹1,080.00 | — |
| SGST 9% | ₹1,080.00 | — |
| IGST 18% | — | ₹2,160.00 |
| Total | ₹14,160.00 | ₹14,160.00 |
Rounding and odd paise
When the tax comes to an odd number of paise, one half gets the extra paisa so that CGST + SGST always equals the full tax. Many businesses round the invoice total to the nearest rupee and show the difference as a "round off" line.
When no GST is charged
Unregistered sellers, composition dealers and sellers of exempt goods do not charge GST on their bills. They usually issue a Bill of Supply instead of a Tax Invoice.
Common mistakes
- Choosing IGST just because the customer's head office is in another state, when the place of supply is in your state.
- Charging CGST + SGST to an out-of-state customer — the customer may not be able to claim the credit.
- Forgetting the state name and code of the place of supply on the invoice.
This guide is general information, not tax advice. Confirm unusual cases with your tax professional.
Frequently asked questions
Is the total tax different for IGST and CGST + SGST?
No. At the same rate the total tax is identical. Only the way it is split and reported changes.
Who decides the place of supply?
GST law sets the rules. For most goods it is where delivery ends; for most B2B services it is the recipient's registered location.
Can iluvinvoice.net choose CGST/SGST or IGST automatically?
Yes. It compares your business state with the place of supply you select on the invoice and applies the right split.
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