CGST + SGST or IGST? How to tell, with examples
Updated 30-10-2026
Every GST bill splits its tax one of two ways. If the supply stays inside your State, half is CGST and half SGST. If it crosses a State border, it is all IGST. The question is where the "place of supply" is.
The rule
- Your location and the place of supply in the same State → intra-State → CGST + SGST (SGST is called UTGST in Chandigarh, Ladakh, Lakshadweep, Andaman and Nicobar Islands, and Dadra and Nagar Haveli and Daman and Diu).
- Different States → inter-State → IGST.
Where is the place of supply? (goods)
- Goods you deliver: where the delivery ends.
- "Bill to" one party, "ship to" another on their instruction: the State of the party you bill.
- A sale to an unregistered buyer: the State of the address you record on the bill (if you have none, your own State).
Examples
| Seller | Buyer / delivery | Taxable value at 18% | Tax |
|---|---|---|---|
| Noida (Uttar Pradesh) | Ghaziabad (Uttar Pradesh) | ₹10,000 | CGST ₹900 + SGST ₹900 |
| Noida (Uttar Pradesh) | Registered buyer in Delhi, delivered in Delhi | ₹10,000 | IGST ₹1,800 |
| Noida (Uttar Pradesh) | Walk-in customer at your shop | ₹10,000 | CGST ₹900 + SGST ₹900 |
The total tax is the same either way — what changes is which government gets it, and where it shows on your return.
Services, briefly
For most services the place of supply is the registered buyer's location; for an unregistered buyer it is the address on record, or else your own location. Some services (for example those about property, events or transport) have their own rules — ask your CA.
Our billing app works out the place of supply from the buyer's GSTIN or address and applies CGST + SGST or IGST by itself; you can change it on a bill for special cases.
Sources
Checked against the official text on 30-10-2026. This is general information, not tax advice.