{"id":10732,"date":"2026-10-27T07:49:40","date_gmt":"2026-10-27T07:49:40","guid":{"rendered":"https:\/\/margbooks.com\/blogs\/?p=10732"},"modified":"2026-10-27T07:50:25","modified_gmt":"2026-10-27T07:50:25","slug":"cgst-sgst-igst-on-invoices","status":"publish","type":"post","link":"https:\/\/margbooks.com\/blogs\/cgst-sgst-igst-on-invoices\/","title":{"rendered":"CGST, SGST and IGST on Invoices: What&#8217;s the Difference and Which One Applies?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69_1 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #1c6e70;color:#1c6e70\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #1c6e70;color:#1c6e70\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/margbooks.com\/blogs\/cgst-sgst-igst-on-invoices\/#What_are_CGST_SGST_and_IGST\" title=\"What are CGST, SGST and IGST?\">What are CGST, SGST and IGST?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/margbooks.com\/blogs\/cgst-sgst-igst-on-invoices\/#CGST_vs_SGST_vs_IGST\" title=\"CGST vs SGST vs IGST&nbsp;\">CGST vs SGST vs IGST&nbsp;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/margbooks.com\/blogs\/cgst-sgst-igst-on-invoices\/#Bill_faster_skip_the_tax_errors_Start_your_free_trial\" title=\"Bill faster, skip the tax errors. Start your free trial\">Bill faster, skip the tax errors. Start your free trial<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/margbooks.com\/blogs\/cgst-sgst-igst-on-invoices\/#How_to_Show_CGST_SGST_and_IGST_on_a_GST_Invoice\" title=\"How to Show CGST, SGST and IGST on a GST Invoice&nbsp;\">How to Show CGST, SGST and IGST on a GST Invoice&nbsp;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/margbooks.com\/blogs\/cgst-sgst-igst-on-invoices\/#Two_examples_with_real_numbers\" title=\"Two examples with real numbers\">Two examples with real numbers<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/margbooks.com\/blogs\/cgst-sgst-igst-on-invoices\/#What_a_GST_invoice_must_show\" title=\"What a GST invoice must show\">What a GST invoice must show<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/margbooks.com\/blogs\/cgst-sgst-igst-on-invoices\/#Common_Mistakes_When_Choosing_the_Tax_Head\" title=\"Common Mistakes When Choosing the Tax Head\">Common Mistakes When Choosing the Tax Head<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/margbooks.com\/blogs\/cgst-sgst-igst-on-invoices\/#Let_your_invoices_apply_CGST_SGST_or_IGST_for_you_Try_MargBooks_free\" title=\"Let your invoices apply CGST, SGST, or IGST for you. Try MargBooks free\">Let your invoices apply CGST, SGST, or IGST for you. Try MargBooks free<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/margbooks.com\/blogs\/cgst-sgst-igst-on-invoices\/#How_the_tax_head_affects_your_credit\" title=\"How the tax head affects your credit\">How the tax head affects your credit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/margbooks.com\/blogs\/cgst-sgst-igst-on-invoices\/#From_invoice_to_return\" title=\"From invoice to return\">From invoice to return<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/margbooks.com\/blogs\/cgst-sgst-igst-on-invoices\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/margbooks.com\/blogs\/cgst-sgst-igst-on-invoices\/#FAQs\" title=\"FAQs\">FAQs<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>CGST and SGST are charged together when you sell within one state. The GST rate is split evenly: half to the Centre and half to the State. IGST is charged when the sale crosses state lines (or involves an import), and it&#8217;s the full GST rate in one line. What decides it is the place of supply, not where your shop or factory sits. That&#8217;s the whole rule. The rest of this post is about applying it without making the mistakes that cost businesses real money.<\/p>\n\n\n\n<p>Picture a wholesaler in Delhi. He bills fifty customers a week. Forty are in Delhi, ten are in Haryana and Uttar Pradesh. For years he&#8217;s been adding &#8220;GST 18%&#8221; to every bill and letting his accountant sort out the rest at month-end.<\/p>\n\n\n\n<p>Then a buyer in Noida writes back: &#8220;Your invoice shows CGST and SGST. I can&#8217;t claim credit on this.&#8221; He&#8217;s right. It should have been IGST.<\/p>\n\n\n\n<p>A wrong tax head isn&#8217;t a typo. It can block your customer&#8217;s input credit, throw your GSTR-1 and GSTR-3B out of sync, and leave you correcting invoices months later. Let&#8217;s fix it at the source.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_CGST_SGST_and_IGST\"><\/span><strong>What are CGST, SGST and IGST?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>GST in India is a dual tax. Both the Centre and the states get a share, so every sale carries two pieces of tax. How those pieces appear on your invoice depends on the type of sale.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>CGST (Central GST)<\/strong> goes to the central government.<\/li>\n\n\n\n<li><strong>SGST (State GST)<\/strong> goes to the state where the sale takes place.<\/li>\n\n\n\n<li><strong>IGST (Integrated GST)<\/strong> is collected by the Centre on inter-state sales, then shared with the state where the goods or services are finally consumed.<\/li>\n<\/ul>\n\n\n\n<p>Union Territories without their own legislature use UTGST in place of SGST. It works the same way, so we&#8217;ll stick to SGST here.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"CGST_vs_SGST_vs_IGST\"><\/span><strong>CGST vs SGST vs IGST&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>CGST Vs SGST vs IGST: these are the few pointers based on which the comparison is taking place.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><\/td><td><strong>CGST<\/strong><\/td><td><strong>SGST<\/strong><\/td><td><strong>IGST<\/strong><\/td><\/tr><tr><td>Full form<\/td><td>Central GST<\/td><td>State GST<\/td><td>Integrated GST<\/td><\/tr><tr><td>When it applies<\/td><td>Sale within one state<\/td><td>Sale within one state<\/td><td>Sale between states, imports, exports<\/td><\/tr><tr><td>Who collects it<\/td><td>Central government<\/td><td>State government<\/td><td>Central government, shared with destination state<\/td><\/tr><tr><td>Share of the rate<\/td><td>Half<\/td><td>Half<\/td><td>The full rate<\/td><\/tr><tr><td>Credit can be used against<\/td><td>CGST, IGST<\/td><td>SGST, IGST<\/td><td>IGST, then CGST, then SGST<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>The total tax is the same either way. An 18% item carries 9% + 9% inside a state, or 18% across states. Only the labels change.<\/p>\n\n\n\n<div class=\"banner-container\">\n    <div class=\"inner-container\">\n\n        <div class=\"banner-img-second\">\n            <img decoding=\"async\" data-src=\"https:\/\/margBooks.com\/blogs\/wp-content\/uploads\/2026\/07\/Invoice.webp\" alt=\"Growth Image\" title=\"\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" class=\"lazyload\"><noscript><img decoding=\"async\" data-src=\"https:\/\/margBooks.com\/blogs\/wp-content\/uploads\/2026\/07\/Invoice.webp\" alt=\"Growth Image\" title=\"\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" class=\"lazyload\"><noscript><img decoding=\"async\" src=\"https:\/\/margBooks.com\/blogs\/wp-content\/uploads\/2026\/07\/Invoice.webp\" alt=\"Growth Image\" title=\"\"><\/noscript><\/noscript>\n        <\/div>\n\n        <div class=\"banner-content\">\n            <h3><span class=\"ez-toc-section\" id=\"Bill_faster_skip_the_tax_errors_Start_your_free_trial\"><\/span>Bill faster, skip the tax errors. Start your free trial<span class=\"ez-toc-section-end\"><\/span><\/h3>\n        <\/div>\n\n        <div class=\"banner-btn-second\">\n            <a href=\"https:\/\/me9.in\/MBB\" target=\"_blank\" rel=\"noopener\">\n                 Book Free Demo!\n            <\/a>\n        <\/div>\n\n    <\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Show_CGST_SGST_and_IGST_on_a_GST_Invoice\"><\/span><strong>How to Show CGST, SGST and IGST on a GST Invoice&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You only need to answer three questions to know how to show CGST, SGST AND IGST on a GST Invoice.&nbsp;<\/p>\n\n\n\n<p><strong>1. Where is the supplier located?<\/strong> That&#8217;s the state in your GST registration.<\/p>\n\n\n\n<p><strong>2. What is the place of supply?<\/strong> For goods, it&#8217;s usually where the goods are delivered or where their movement ends. For services, the rules are more detailed, but the customer&#8217;s location is often the key.<\/p>\n\n\n\n<p><strong>3. Are they in the same state?<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Same state \u2192 <strong>CGST + SGST<\/strong><\/li>\n\n\n\n<li>Different states \u2192 <strong>IGST<\/strong><\/li>\n\n\n\n<li>Import, export, or supply to an SEZ \u2192 <strong>IGST<\/strong><\/li>\n<\/ul>\n\n\n\n<p>That third bit catches people out. A shopkeeper in Gurugram selling to a customer who walks in and pays cash is an intra-state sale. But if that same customer asks you to ship the goods to Jaipur, the place of supply is Rajasthan, and it&#8217;s now an IGST invoice. Getting the supply type right also depends on the right classification.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Two_examples_with_real_numbers\"><\/span><strong>Two examples with real numbers<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Take an item priced at \u20b910,000 with an 18% GST rate.<\/p>\n\n\n\n<p><strong>Example 1: Sale within the same state<\/strong><\/p>\n\n\n\n<p>A hardware dealer in Lucknow sells to a contractor in Kanpur. Both are in Uttar Pradesh.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Taxable value: \u20b910,000<\/li>\n\n\n\n<li>CGST @ 9%: \u20b9900<\/li>\n\n\n\n<li>SGST @ 9%: \u20b9900<\/li>\n\n\n\n<li><strong>Invoice total: \u20b911,800<\/strong><\/li>\n<\/ul>\n\n\n\n<p><strong>Example 2: Sale to another state<\/strong><\/p>\n\n\n\n<p>The same dealer sells the same item to a contractor in Jaipur.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Taxable value: \u20b910,000<\/li>\n\n\n\n<li>IGST @ 18%: \u20b91,800<\/li>\n\n\n\n<li><strong>Invoice total: \u20b911,800<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Same customer cost, same total tax. Different columns on the invoice, and very different treatment in the returns.<\/p>\n\n\n\n<p><em>Always check the current GST rate for your product before billing. Rates and slabs get revised, and 18% is used here only to keep the maths easy.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_a_GST_invoice_must_show\"><\/span><strong>What a GST invoice must show<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Whichever tax applies, a proper tax invoice carries:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Your name, address and GSTIN<\/li>\n\n\n\n<li>The buyer&#8217;s name, address and GSTIN (for B2B)<\/li>\n\n\n\n<li>Invoice number and date<\/li>\n\n\n\n<li>HSN or SAC code<\/li>\n\n\n\n<li>Description, quantity, and taxable value<\/li>\n\n\n\n<li>Tax rate and the amount under each head (CGST and SGST, or IGST)<\/li>\n\n\n\n<li>Place of supply<\/li>\n\n\n\n<li>Total invoice value<\/li>\n<\/ul>\n\n\n\n<p>Missing the place of supply is one of the most common gaps we see, and it&#8217;s the very field that decides your tax head.<\/p>\n\n\n\n<p>If you&#8217;d rather not build this by hand every time, <a href=\"https:\/\/margbooks.com\/gst-billing-software.html\">GST billing software<\/a> fills in the correct split automatically once you enter the buyer&#8217;s state.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Common_Mistakes_When_Choosing_the_Tax_Head\"><\/span><strong>Common Mistakes When Choosing the Tax Head<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here are the common mistakes that people often make while choosing the tax head.&nbsp;<\/p>\n\n\n\n<p><strong>Charging CGST + SGST on an out-of-state sale: <\/strong>The most common one by far. The buyer can&#8217;t use the credit, and you&#8217;ll need to issue a credit note and a fresh invoice.<\/p>\n\n\n\n<p><strong>Using your own state as the place of supply for services:<\/strong> For many services, the customer&#8217;s location matters, not yours.<\/p>\n\n\n\n<p><strong>Picking the wrong HSN code:<\/strong> The wrong code often means the wrong rate, which means the wrong tax on top of the wrong head.<\/p>\n\n\n\n<p><strong>Splitting the tax unevenly:<\/strong> CGST and SGST must be equal. If they&#8217;re not, something is off.<\/p>\n\n\n\n<p><strong>Fixing everything at month-end:<\/strong> By then you&#8217;ve issued dozens of invoices with the same error. It&#8217;s easier to catch it at the billing counter than in the return.<\/p>\n\n\n\n<div class=\"banner-container\">\n    <div class=\"inner-container\">\n\n        <div class=\"banner-img-second\">\n            <img decoding=\"async\" data-src=\"https:\/\/margBooks.com\/blogs\/wp-content\/uploads\/2026\/07\/Invoice.webp\" alt=\"Growth Image\" title=\"\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" class=\"lazyload\"><noscript><img decoding=\"async\" data-src=\"https:\/\/margBooks.com\/blogs\/wp-content\/uploads\/2026\/07\/Invoice.webp\" alt=\"Growth Image\" title=\"\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" class=\"lazyload\"><noscript><img decoding=\"async\" src=\"https:\/\/margBooks.com\/blogs\/wp-content\/uploads\/2026\/07\/Invoice.webp\" alt=\"Growth Image\" title=\"\"><\/noscript><\/noscript>\n        <\/div>\n\n        <div class=\"banner-content\">\n            <h3><span class=\"ez-toc-section\" id=\"Let_your_invoices_apply_CGST_SGST_or_IGST_for_you_Try_MargBooks_free\"><\/span>Let your invoices apply CGST, SGST, or IGST for you. Try MargBooks free<span class=\"ez-toc-section-end\"><\/span><\/h3>\n        <\/div>\n\n        <div class=\"banner-btn-second\">\n            <a href=\"https:\/\/me9.in\/MBB\" target=\"_blank\" rel=\"noopener\">\n                 Book Free Demo!\n            <\/a>\n        <\/div>\n\n    <\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_the_tax_head_affects_your_credit\"><\/span><strong>How the tax head affects your credit<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The split matters because of how Input Tax Credit (ITC) works. The credit you earn under one head can only be used against certain liabilities.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>CGST credit pays CGST first, then IGST. It can never pay SGST.<\/li>\n\n\n\n<li>SGST credit pays SGST first, then IGST. It can never pay CGST.<\/li>\n\n\n\n<li>IGST credit pays IGST first, then CGST, then SGST.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"From_invoice_to_return\"><\/span><strong>From invoice to return<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Every invoice you raise feeds your GST return. Your outward supplies, tax head by tax head, go into <a href=\"https:\/\/margbooks.com\/gstr-format\/gstr1.html\">GSTR-1<\/a>, and your final liability is settled in <a href=\"https:\/\/margbooks.com\/gstr-format\/gstr3b.html\">GSTR-3B<\/a>. If the invoice says IGST but your books say CGST + SGST, the mismatch shows up quickly.<\/p>\n\n\n\n<p>Businesses above the e-invoicing threshold also need an Invoice Reference Number (IRN) for B2B invoices. A good <a href=\"https:\/\/margbooks.com\/e-invoicing-software.html\">e-invoice software<\/a> generates the IRN as you bill, so there&#8217;s no separate step to forget.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>On a busy Saturday, nobody wants to cross-check states and rates by hand. The easiest fix is to take that decision away from the billing counter: pick the customer, and the tax head follows from their state, with the rate coming from the item&#8217;s HSN code.<\/p>\n\n\n\n<p>Most modern billing tools work this way. In <a href=\"https:\/\/margbooks.com\/\">MargBooks software<\/a>, for example, the CGST and SGST (or IGST) split is applied the moment you choose the party, and the same invoice data carries into your returns. I<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h6 class=\"wp-block-heading\"><strong>Q1. What is the difference between CGST, SGST and IGST?<\/strong>&nbsp;<\/h6>\n\n\n\n<p>CGST and SGST are charged together on sales within one state, each at half the GST rate. IGST is charged on sales between states and on imports, at the full rate. The total tax is the same in both cases.<\/p>\n\n\n\n<h6 class=\"wp-block-heading\"><strong>Q2. Under what circumstances is IGST applied instead of CGST and SGST?&nbsp;<\/strong><\/h6>\n\n\n\n<p>IGST applies when the supplier and recipient are located in different states or when the supply involves an import, export, or supply to an SEZ.<\/p>\n\n\n\n<h6 class=\"wp-block-heading\"><strong>Q3. Is it possible for CGST, SGST and IGST to be shown on one invoice?&nbsp;<\/strong><\/h6>\n\n\n\n<p>No. Since a particular supply can only be either an intra-state supply (CGST + SGST) or an inter-state supply (IGST), it is necessary to issue two different invoices if two clients are in different states.&nbsp;<\/p>\n\n\n\n<h6 class=\"wp-block-heading\"><strong>Q4. Is the IGST rate equivalent to the sum of CGST and SGST?&nbsp;<\/strong><\/h6>\n\n\n\n<p>Yes. When an item is taxed at 18%, there will be 9% CGST and 9% SGST intrastate, whereas interstate it will be 18% IGST.&nbsp;<\/p>\n\n\n\n<h6 class=\"wp-block-heading\"><strong>Q5. What happens if I charge the incorrect tax amount on an invoice?<\/strong><\/h6>\n\n\n\n<p>The buyer might not be able to claim input credit, your returns might not be in accordance, and you might receive a notice or have to reissue the invoice. The usual remedy is to issue a credit note along with an adjusted invoice.&nbsp;<\/p>\n\n\n\n<h6 class=\"wp-block-heading\"><strong>Q6. Can CGST credit be used to pay SGST?<\/strong>&nbsp;<\/h6>\n\n\n\n<p>No. CGST credit can pay CGST and IGST only, and SGST credit can pay SGST and IGST only. IGST credit can pay all three.<\/p>\n\n\n\n<h6 class=\"wp-block-heading\"><strong>Q7. Which tax applies to online sales across states?<\/strong>&nbsp;<\/h6>\n\n\n\n<p>IGST, since the place of supply is the buyer&#8217;s state. Sellers who use marketplaces can save time with e-commerce seller software that creates GST-ready invoices for each order.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>CGST and SGST are charged together when you sell within one state. The GST rate is split evenly: half to the Centre and half to the State. IGST is charged when the sale crosses state lines (or involves an import), and it&#8217;s the full GST rate in one line. What decides it is the place [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":10733,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[2605],"tags":[],"class_list":["post-10732","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst-taxation"],"blocksy_meta":[],"blog_post_layout_featured_media_urls":{"thumbnail":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/10\/SGST-and-IGST-on-Invoices-150x150.webp",150,150,true],"full":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/10\/SGST-and-IGST-on-Invoices.webp",1200,628,false]},"categories_names":{"2605":{"name":"GST &amp; Taxation","link":"https:\/\/margbooks.com\/blogs\/category\/gst-taxation\/"}},"tags_names":[],"comments_number":"0","wpmagazine_modules_lite_featured_media_urls":{"thumbnail":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/10\/SGST-and-IGST-on-Invoices-150x150.webp",150,150,true],"cvmm-medium":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/10\/SGST-and-IGST-on-Invoices-300x300.webp",300,300,true],"cvmm-medium-plus":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/10\/SGST-and-IGST-on-Invoices-305x207.webp",305,207,true],"cvmm-portrait":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/10\/SGST-and-IGST-on-Invoices-400x600.webp",400,600,true],"cvmm-medium-square":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/10\/SGST-and-IGST-on-Invoices-600x600.webp",600,600,true],"cvmm-large":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/10\/SGST-and-IGST-on-Invoices-1024x628.webp",1024,628,true],"cvmm-small":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/10\/SGST-and-IGST-on-Invoices-130x95.webp",130,95,true],"full":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/10\/SGST-and-IGST-on-Invoices.webp",1200,628,false]},"_links":{"self":[{"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/posts\/10732","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/comments?post=10732"}],"version-history":[{"count":2,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/posts\/10732\/revisions"}],"predecessor-version":[{"id":10735,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/posts\/10732\/revisions\/10735"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/media\/10733"}],"wp:attachment":[{"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/media?parent=10732"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/categories?post=10732"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/tags?post=10732"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}