Inter-state vs Intra-state GST: CGST, SGST & IGST Explained

The Golden Rule of GST

The type of GST you charge depends entirely on your location (Location of Supplier) and your customer's location (Place of Supply).

1. Intra-state Transaction (Same State)

When the supplier and the recipient are in the same state or union territory.

• Taxes applicable: CGST (Central GST) + SGST (State GST).
• Example: A shop in Mumbai selling to a customer in Mumbai.

2. Inter-state Transaction (Different States)

When the supplier and the recipient are in different states or union territories.

• Taxes applicable: IGST (Integrated GST).
• Example: A designer in Bengaluru selling to a client in Delhi.

Special Case: Union Territories

Instead of SGST, Union Territories without a legislature (like Andaman & Nicobar) use UTGST (Union Territory GST).