CGST vs SGST vs IGST: Which Tax to Charge on Your Invoice?

If you've ever stared at a GST invoice wondering whether to write CGST+SGST or IGST — you're not alone. Here's the simple rule that covers 99% of cases.

The One Rule You Need to Know

The type of GST depends on where your customer is located relative to you:

• Same state as you → CGST + SGST (each at half the total GST rate)
• Different state → IGST (the full GST rate as a single line)
• Outside India (export) → Zero-rated (no GST, but mention LUT/Bond)

Example: 18% GST on a ₹10,000 Service

Intra-state (same state):

• CGST @ 9% = ₹900
• SGST @ 9% = ₹900
• Total GST = ₹1,800
• Invoice Total = ₹11,800

Inter-state (different state):

• IGST @ 18% = ₹1,800
• Invoice Total = ₹11,800

The total tax amount is identical — but the label changes depending on the transaction type.

What is CGST?

Central Goods and Services Tax (CGST) is collected by the Central Government on intra-state transactions. It goes to the Union Government's consolidated fund.

What is SGST?

State Goods and Services Tax (SGST) is collected by the State Government on the same intra-state transaction. It stays with the state where the sale occurs.

What is IGST?

Integrated Goods and Services Tax (IGST) applies to inter-state transactions and imports. It is collected by the Central Government and later apportioned between the Centre and the destination state.

What is UTGST?

For transactions within a Union Territory (like Delhi before it got a legislature, Chandigarh, Lakshadweep), UTGST replaces SGST. Rules are the same as SGST.

Common GST Rates by Category

• 0% — Fresh fruits, milk, books, newspapers
• 5% — Packaged food, branded clothes under ₹1,000, transport services
• 12% — Processed food, business class tickets, hotels ₹1,001–7,500/night
• 18% — Most services (IT, consulting, design), electronics, restaurants
• 28% — Luxury goods, pan masala, aerated beverages, casinos

How InvoBill Handles This Automatically

When you use the InvoBill free GST invoice generator, just enter your GST % for each line item. InvoBill automatically splits it into CGST+SGST or displays it as IGST — you don't need to calculate anything manually.

Key Takeaway

Same state = CGST + SGST. Different state = IGST. Export = Zero-rated. That's the entire rule. Try InvoBill to generate the correct invoice automatically.