India's GST is a dual structure: intra-state sales split tax between Centre and State; inter-state sales use a single integrated tax. Understanding which type applies avoids wrong billing.
The Four Types of GST
| Type | Full Name | Collected By | When It Applies |
|---|---|---|---|
| CGST | Central Goods & Services Tax | Central Govt. | Intra-state supply |
| SGST | State Goods & Services Tax | State Govt. | Intra-state supply |
| IGST | Integrated Goods & Services Tax | Central Govt. | Inter-state supply |
| UTGST | Union Territory GST | UT Administration | Supply within a UT (no legislature) |
Intra-State: CGST + SGST (each half the rate)
| GST Rate | CGST | SGST | Example on ₹10,000 |
|---|---|---|---|
| 5% | 2.5% | 2.5% | ₹250 + ₹250 = ₹500 |
| 12% | 6% | 6% | ₹600 + ₹600 = ₹1,200 |
| 18% | 9% | 9% | ₹900 + ₹900 = ₹1,800 |
| 28% | 14% | 14% | ₹1,400 + ₹1,400 = ₹2,800 |
Inter-State: IGST Only
When seller and buyer are in different states, IGST = full GST rate. Central Govt collects IGST and later transfers the state share to the destination state.
Info
UTGST applies in Chandigarh, Dadra & Nagar Haveli, Lakshadweep, Andaman & Nicobar. Delhi, Puducherry, and J&K use SGST (they have legislatures).
ITC Cross-Utilisation Rules
- CGST credit → pay CGST first, then IGST
- SGST credit → pay SGST first, then IGST
- IGST credit → pay IGST first, then CGST, then SGST
- CGST credit cannot pay SGST; SGST credit cannot pay CGST