Guides · GST
CGST, SGST and IGST, explained
GST comes in three heads — CGST, SGST and IGST — and which one you charge depends on where the supply happens. Get the place of supply right and the split follows.
Intra-state versus inter-state
When the supplier and the place of supply are in the same state, the tax is split into CGST (central) and SGST (state) in equal halves. When they are in different states, a single IGST is charged instead, at the combined rate.
For a Union Territory without a legislature, UTGST replaces SGST, working the same way as the state component.
Why the place of supply matters
The place of supply is the rule that decides whether a transaction is intra-state or inter-state, and therefore which tax heads apply. For goods it usually follows where the goods are delivered; for services the rules vary by service type.
Charging the wrong head is a frequent error: CGST and SGST on an inter-state sale, or IGST on a local one. It has to be corrected, because input tax credit is claimed head by head.
How Lekha computes the split
Lekha generates GST-compliant delivery challans and tax invoices against a purchase order, with HSN, place of supply, and the right CGST/SGST or IGST split computed live, and gap-free financial-year numbering.
By reading the place of supply on each document, Lekha applies the correct CGST/SGST or IGST split without you having to decide it manually on every bill.
Questions
- When do I charge CGST and SGST?
- On an intra-state supply — where the supplier and the place of supply are in the same state. The GST is split equally into CGST and SGST.
- When do I charge IGST?
- On an inter-state supply — where the supplier and the place of supply are in different states or union territories. A single IGST is charged at the combined rate.
- What is UTGST?
- UTGST is the union-territory counterpart of SGST, charged with CGST on intra-territory supplies in union territories without their own legislature.
This guide is general information, not legal or tax advice. Confirm the current rules and your own circumstances for any specific case.