GST invoice generator
CGST + SGST vs IGST: Which Tax Goes on Your Invoice?
GST in India is split differently depending on where the buyer is. Getting it wrong means incorrect invoices and extra work at filing time.
The rule is based on the place of supply.
The basic rule
- Intra-state supply (seller and place of supply in the same state): CGST + SGST, each half of the rate.
- Inter-state supply (different states): IGST at the full rate.
Examples
A Gujarat seller selling a 5% GST item to a buyer in Gujarat charges 2.5% CGST + 2.5% SGST. The same seller selling to a buyer in Maharashtra charges 5% IGST.
Quick table
- Seller in Gujarat, buyer in Gujarat, 12% item → 6% CGST + 6% SGST.
- Seller in Gujarat, buyer in Rajasthan, 12% item → 12% IGST.
- Seller in Delhi, buyer in Delhi, 5% item → 2.5% CGST + 2.5% SGST.
Common mistakes
- Using the billing state instead of the place of supply.
- Charging IGST on a local sale, or CGST + SGST on an inter-state one.
- Rounding each tax differently so totals do not match.
Why it matters
The tax type affects how the buyer claims input tax credit and how you report the sale in your returns. Correct invoices avoid mismatches later.
Let the tool decide
In the GST invoice generator, set your state and the buyer’s state. The correct tax type is applied automatically.
Frequently asked questions
What about union territories?
UTGST applies instead of SGST for certain UTs; check with your accountant.
Does the marketplace invoice change this?
Marketplace invoices follow their own systems; this is for invoices you issue yourself.
Is this professional advice?
No, confirm with a tax professional.
Is the total tax the same either way?
Yes, the total rate is the same; only the split changes.
Does the tool round correctly?
It calculates each tax and the total for you; review before issuing.