CGST and SGST vs explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
CGST and SGST and IGST are often confused. This guide lays out the key differences between CGST and SGST and IGST in a simple comparison table, so you know exactly how they differ and when each applies.
CGST and SGST vs IGST — overview
CGST+SGST apply to intra-state supplies (within a state), while IGST applies to inter-state supplies and imports.
Key differences at a glance
| Basis | CGST and SGST | IGST |
|---|---|---|
| Applies to | Supply within the same state | Supply between states / imports |
| Split | Shared by Centre and State | Collected by the Centre, shared later |
| Example | Sale in Delhi to a Delhi buyer | Sale from Delhi to a Mumbai buyer |
| Rate | Half CGST + half SGST | Single IGST equal to CGST+SGST |
Key takeaways
- Applies to: CGST and SGST — Supply within the same state; IGST — Supply between states / imports.
- Split: CGST and SGST — Shared by Centre and State; IGST — Collected by the Centre, shared later.
- Example: CGST and SGST — Sale in Delhi to a Delhi buyer; IGST — Sale from Delhi to a Mumbai buyer.
- Rate: CGST and SGST — Half CGST + half SGST; IGST — Single IGST equal to CGST+SGST.
When to use CGST and SGST
The supplier and buyer are in the same state (intra-state supply).
When to use IGST
The supplier and buyer are in different states, or the goods are imported.
Why the difference matters
Getting the CGST and SGST vs IGST distinction right affects your GST and indirect tax decisions — the wrong choice can mean extra tax, higher compliance or missed benefits. Understanding how they differ helps you pick correctly and stay compliant.
The bottom line
It is not a choice — the place of supply decides it. Intra-state attracts CGST+SGST; inter-state and imports attract IGST.
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