The rule in one line
Same state → CGST + SGST (half each). Different state → IGST (the full rate). In a Union Territory without its own legislature (such as Chandigarh or Ladakh), UTGST replaces SGST.
| Situation | Taxes on the invoice | At 18% on ₹50,000 |
|---|---|---|
| Seller in Pune, buyer in Mumbai (both Maharashtra) | CGST 9% + SGST 9% | ₹4,500 + ₹4,500 |
| Seller in Pune, buyer in Bengaluru (Karnataka) | IGST 18% | ₹9,000 |
| Seller in Delhi, buyer in Chandigarh | IGST 18% | ₹9,000 |
| Seller and buyer both in Chandigarh | CGST 9% + UTGST 9% | ₹4,500 + ₹4,500 |
| Imported goods | IGST 18% at customs | ₹9,000 |
The buyer pays the same ₹59,000 in every case. The difference is only who collects it: CGST goes to the Centre, SGST to the state, and IGST is collected by the Centre and then shared with the state where the goods or services are consumed — GST is a destination-based tax.
What decides “same state”?
It is the place of supply compared with the supplier’s location. For goods it is usually where delivery ends. For most services to a registered business it is the buyer’s registered location; for services to consumers it is often the consumer’s address. Hotels and events are taxed where the property or event is.
Why it matters for businesses
Charging the wrong type is a common mistake. If you charge CGST + SGST on what was really an inter-state supply, you have to pay IGST correctly and then claim a refund of the wrong tax — it does not simply cancel out. Input tax credit is also used in a set order: IGST credit first against IGST, then CGST and SGST; CGST credit can never pay SGST and vice versa.
Using the calculator
This page is pre-filled with ₹50,000 at 18% sent to another state, so the result shows IGST of ₹9,000. Switch “Type of supply” to “Within the same state” and you will see the same ₹9,000 shown as ₹4,500 CGST and ₹4,500 SGST.
A quick check before you raise an invoice
- Where is your registered place of business? That is the supplier’s state.
- Where is the place of supply? For goods, usually the delivery address; for services to a business, usually its registered address.
- Same state → CGST + SGST. Different states → IGST.
GSTINs make this easy: the first two digits are the state code (27 Maharashtra, 29 Karnataka, 07 Delhi, 33 Tamil Nadu). If the first two digits of your GSTIN and your customer’s GSTIN match and the goods stay in that state, it is an intra-state supply.
For consumers there is nothing to do — the total is the same. But it is a handy way to spot a wrong invoice: an online order delivered from another state should show IGST, not CGST + SGST.
Key GST figures (checked 5 November 2026)
| Item | Figure |
|---|---|
| Main slabs | 5% (merit) and 18% (standard) |
| Special rate | 40% (luxury and sin goods) |
| Gold, silver, jewellery | 3% |
| Rough diamonds | 0.25% |
| In force since | 22 September 2025 (56th GST Council, 3 Sep 2025) |
| Latest review | 57th GST Council, 8 October 2026 — no rate changes |
FAQ
What is the difference between CGST, SGST and IGST?
CGST and SGST are charged together on sales within one state (half the rate each). IGST is charged at the full rate on sales between states and on imports.
How much IGST is on ₹50,000 at 18%?
₹9,000, making the total ₹59,000.
Is IGST more expensive than CGST + SGST?
No. 18% IGST equals 9% CGST + 9% SGST — ₹9,000 either way on ₹50,000.
Sources (checked 5 November 2026): CBIC notification No. 9/2025-Central Tax (Rate) and related rate notifications, effective 22 September 2025; PIB release on the 56th GST Council meeting (3 September 2025); press briefing after the 57th GST Council meeting, New Delhi, 8 October 2026 (no rate changes, reported by Business Today and Upstox); CGST Act 2017 s.9 and IGST Act 2017 s.5.