GST · Glossary
CGST, SGST, and IGST
Three GST components: Central GST, State GST, and Integrated GST.
Updated 2026-10-08Source: Income-tax Act · CGST Act · CBDT/CBIC
What it means
The GST system splits indirect tax revenue between the Centre and the States under the CGST Act, 2017, the various SGST Acts, and the IGST Act, 2017:
- CGST (Central GST): the Centre's share on intra-state supplies. Half the total GST rate.
- SGST (State GST): the State's share on intra-state supplies. Half the total GST rate.
- IGST (Integrated GST): the full GST rate on inter-state supplies, collected centrally under Section 5 of the IGST Act and apportioned between Centre and destination State.
Which applies depends on the place of supply (Sections 12/13 of the IGST Act): if the supplier and recipient are in the same state, CGST + SGST. If different states, IGST. For a freelance service taxed at 18% GST, intra-state is 9% CGST + 9% SGST; inter-state is 18% IGST.
A worked example
Arjun (KA 29) bills a Bangalore client Rs. 1,00,000: 9% CGST + 9% SGST = Rs. 18,000 total GST. Same Arjun bills a Mumbai client Rs. 1,00,000: 18% IGST = Rs. 18,000 — same total, different split, different ledgers.
Don’t split a single inter-state invoice into "half CGST + half IGST" — it’s either pure CGST+SGST (intra) or pure IGST (inter). Mixing creates portal-side mismatches that surface at filing time.
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- GST rates & SAC codes — the rate and SAC for any service.
- All 28 terms — the full glossary, by category.
Income-tax entries cite the Income-tax Act 1961, which governs FY 2025–26 (the return filed in 2026); from tax year 2026–27 the Income-tax Act 2025 applies, with new section numbers shown where we give them. GST law is unchanged. General information, not tax advice; verify with your CA before you file.
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