CGST + SGST vs IGST
CGST and SGST apply together on intra-State supplies, splitting the tax between the Centre and the State. IGST applies as a single levy on inter-State supplies and is later apportioned.
The quick answer
Determine the place of supply first. If the supplier's location and the place of supply are in the same State, charge CGST plus SGST. If they are in different States, charge IGST.
Side-by-side comparison
| Basis | CGST + SGST | IGST |
|---|---|---|
| Applies to | Intra-State supplies | Inter-State supplies, imports and SEZ supplies |
| Levied by | Centre (CGST) and State (SGST) together | Centre, then apportioned to the destination State |
| Rate structure | Total rate split equally between CGST and SGST | Single rate equal to the combined CGST and SGST rate |
| Determining factor | Supplier location and place of supply in the same State | Supplier location and place of supply in different States |
| Input tax credit order | CGST credit against CGST and then IGST; SGST similarly | IGST credit used first, then CGST, then SGST |
| Imports | Not applicable | IGST is levied on import of goods and services |
The exam angle
Almost every GST computation error traces back to determining place of supply incorrectly. Write the place of supply and its governing provision at the top of your answer before computing any liability.
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Talk to usCan CGST credit be used to pay SGST?
No. Cross-utilisation between CGST and SGST is not permitted. The utilisation order is governed by the provisions of the CGST Act — apply the order prescribed for your attempt.
What applies to supplies to an SEZ?
Supplies to a Special Economic Zone unit or developer are treated as inter-State supplies and attract IGST, subject to the zero-rating provisions.
How is place of supply decided for services?
Through the specific place of supply provisions for services, which distinguish registered and unregistered recipients and contain special rules for particular categories of service.
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