CGST, SGST and IGST Explained: Which Tax Goes on Your Invoice?
Charge CGST + SGST (half the rate each) when the supplier's state and the place of supply are the same; charge IGST (the full rate) when they are in different states, for imports, exports and supplies to SEZs. In union territories without a legislature, UTGST replaces SGST. The place of supply – not the buyer's billing address alone – decides which applies.
The rule in one line
Same state → CGST + SGST. Different state → IGST. The total rate is the same either way; only the split changes.
Worked examples (18% GST)
| Situation | Tax on ₹50,000 |
|---|---|
| Jaipur supplier → Jaipur client | CGST ₹4,500 + SGST ₹4,500 |
| Jaipur supplier → Pune client | IGST ₹9,000 |
| Delhi supplier → Chandigarh client | IGST ₹9,000 |
| Supplier in Chandigarh → client in Chandigarh | CGST ₹4,500 + UTGST ₹4,500 |
| Export of services under LUT | IGST 0% |
Place of supply basics
- Goods – where the movement of goods ends (the delivery location).
- Most services to registered businesses – the buyer's registered location.
- Services to unregistered buyers – the buyer's address on record, else the supplier's location.
- Services on immovable property (construction, interiors, solar installation) – where the property is.
- Events and training – where the event takes place.
Common mistakes
- Charging CGST + SGST because the client's head office is in your state while goods are delivered to another state.
- Charging IGST on a local sale to a buyer with an out-of-state GSTIN – the buyer then cannot claim the credit correctly.
- Forgetting to print the place of supply on inter-state invoices.
How Invoice24 handles it
Set your state on the business profile and the client's state (or place of supply) on the invoice. The app splits the tax automatically and prints per-rate CGST/SGST or IGST rows, with HSN/SAC and place of supply.
Frequently asked questions
Is IGST more expensive than CGST + SGST?
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No. IGST at 18% equals CGST 9% + SGST 9%. Only the government that receives the tax changes.
What if I charged the wrong tax type?
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Issue a credit note for the wrong invoice and a fresh invoice with the right tax. The tax paid under the wrong head can be claimed as a refund.
Is export IGST or CGST + SGST?
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Exports are inter-state supplies, so IGST applies – usually at zero under a Letter of Undertaking (LUT).
GST invoices, quotations with client approval and branded letterheads – private, offline-ready and free.