GST (Goods and Services Tax) in India is divided into different types based on the nature of transaction and location of supply. The three main types are CGST, SGST, and IGST.
Understanding these types is very important for businesses, freelancers, accountants, and students who deal with taxation.
CGST is collected by the Central Government on transactions that happen within the same state.
If a product is sold within Maharashtra, CGST is applied along with SGST.
CGST revenue goes directly to the Central Government.
SGST is collected by the State Government on intra-state sales (within the same state).
If a product is sold in Pune to another buyer in Maharashtra, SGST applies.
SGST revenue goes to the state government where the transaction happens.
IGST is applied on inter-state transactions (between two different states) and imports.
If a seller in Maharashtra sells goods to Delhi, IGST is applied.
IGST is collected by the Central Government and later distributed to the destination state.
| Type | Applicable On | Collected By |
|---|---|---|
| CGST | Within same state | Central Government |
| SGST | Within same state | State Government |
| IGST | Between two states | Central Government |
Let’s assume:
Total GST = ₹180
If intra-state:
CGST = ₹90
SGST = ₹90
If inter-state:
IGST = ₹180
You can calculate CGST, SGST and IGST automatically using our free tool.
CGST, SGST and IGST are the three main types.
Central Government collects CGST.
It is used for interstate and import transactions.
To ensure proper tax sharing between central and state governments.
Understanding CGST, SGST, and IGST is essential for anyone dealing with GST in India. It helps in correct billing, tax filing, and business compliance.
👉 Use our GST calculator for instant tax breakdown.