Is IGST more expensive than CGST plus SGST?

No. IGST is charged at the full rate, which equals CGST plus SGST combined. At 18%, it is either 9% + 9% or 18% IGST.

Who gets the IGST revenue?

The Centre collects IGST and then settles the state share with the state where the goods or services are consumed, because GST is a destination-based tax.

Can CGST credit be used to pay SGST?

No. CGST credit can pay only CGST and IGST, and SGST credit can pay only SGST and IGST. Cross-use between CGST and SGST is not allowed.

Is GST charged on exports?

Exports are zero-rated. Exporters either export without paying IGST under a bond or letter of undertaking, or pay IGST and claim a refund, and they can claim credit on their inputs.

CGST, SGST, UTGST and IGST explained

Q: Which places charge UTGST instead of SGST?

Union territories without a legislature: Chandigarh, Ladakh, Lakshadweep, the Andaman and Nicobar Islands, and Dadra and Nagar Haveli and Daman and Diu.

Updated 11 October 2026

CGST, SGST, UTGST and IGST are the four parts of India's GST. When you buy something within your own state, the bill shows CGST plus SGST in equal halves (18% becomes 9% + 9%). When goods or services move from one state to another, the bill shows a single IGST at the full rate. The total tax is the same in both cases.

The four components

Component	Full name	When it applies	Who gets the money
CGST	Central Goods and Services Tax	Sales within a state or union territory	Centre
SGST	State Goods and Services Tax	Sales within a state (and in Delhi, Puducherry and Jammu and Kashmir)	State
UTGST	Union Territory Goods and Services Tax	Sales within a union territory without its own legislature	Union territory
IGST	Integrated Goods and Services Tax	Sales from one state to another, imports, and supplies to SEZs	Collected by the Centre and shared with the consuming state

India uses this "dual" model because the Constitution lets both the Centre and the states tax the same transaction. Splitting the tax this way keeps a single rate for the buyer while giving each government its share.

Intra-state vs inter-state supply

What decides the type of GST is the relationship between two places:

the location of the supplier, and
the place of supply, which for goods is usually where the delivery ends.

If both are in the same state, it is an intra-state supply and attracts CGST + SGST (or CGST + UTGST). If they are in different states, it is an inter-state supply and attracts IGST. Imports are always treated as inter-state, and exports are "zero-rated", which means no GST is finally collected on them.

Worked example. A Mumbai wholesaler sells goods worth ₹50,000, taxable at 18%.

To a shop in Pune (also Maharashtra): CGST 9% = ₹4,500 and SGST 9% = ₹4,500. Total tax ₹9,000; bill ₹59,000.
To a shop in Bengaluru (Karnataka): IGST 18% = ₹9,000. Total tax ₹9,000; bill ₹59,000.

The buyer pays the same either way. The difference is who receives the revenue: in the second case, the Centre collects the IGST and Karnataka, where the goods are consumed, gets its share.

Where UTGST applies

UTGST replaces SGST in union territories that do not have their own legislature: Chandigarh, Ladakh, Lakshadweep, the Andaman and Nicobar Islands, and Dadra and Nagar Haveli and Daman and Diu. Delhi, Puducherry and Jammu and Kashmir have legislatures, so they levy SGST like states. The rate split is identical: 18% becomes 9% CGST plus 9% UTGST.

Place of supply for services

For services, the place of supply follows specific rules:

For most services to a registered business, it is the location of the recipient.
For services linked to property, such as a hotel stay, it is where the property is.
For restaurant meals, salons and similar services, it is generally where the service is actually performed.

So if a Delhi company books a hotel room in Goa for an employee, the hotel charges Goa's CGST and SGST, not IGST. The Delhi company cannot use that Goa SGST credit against its Delhi tax unless it is also registered in Goa.

How credits are used: the set-off order

Businesses can use their input tax credit to pay output tax, but only in a set order:

IGST credit is used first to pay IGST. Any balance can then pay CGST and SGST, in any order or proportion.
CGST credit can pay CGST, and then IGST.
SGST or UTGST credit can pay SGST or UTGST, and then IGST.
CGST credit can never be used to pay SGST, and SGST credit can never pay CGST.

Worked example. In a month, a trader has credits of IGST ₹10,000, CGST ₹3,000 and SGST ₹3,000. Its tax due is IGST ₹4,000, CGST ₹5,000 and SGST ₹5,000.

IGST credit pays the IGST of ₹4,000. The remaining ₹6,000 of IGST credit pays ₹3,000 of CGST and ₹3,000 of SGST.
CGST still due: ₹5,000 minus ₹3,000 = ₹2,000, paid from CGST credit. CGST credit left: ₹1,000.
SGST still due: ₹5,000 minus ₹3,000 = ₹2,000, paid from SGST credit. SGST credit left: ₹1,000.

Total credit ₹16,000 minus total tax ₹14,000 leaves ₹2,000 (₹1,000 CGST + ₹1,000 SGST) to carry forward. No cash payment is needed this month.

What if the wrong type of GST is charged?

Sometimes a supplier charges CGST and SGST when the sale was actually inter-state, or the other way round. The fix is to pay the correct tax and claim a refund of the tax wrongly paid. The law protects you from interest on the correct tax in such cases, but the paperwork takes time, so it is best to get the place of supply right on the invoice in the first place.

Use our GST calculator to see the CGST and SGST split or the IGST amount for any value. The legal texts of the CGST, IGST and UTGST Acts are on cbic-gst.gov.in.