CGST, SGST or IGST? Place of supply in plain words
Same state means CGST + SGST; different state means IGST. Here is how to tell which applies.
The one rule to remember
Compare your state with the place of supply. If they are the same, charge CGST and SGST, each half of the rate (9% + 9% for an 18% item). If they are different, charge IGST at the full rate (18%).
Union territories
In Chandigarh, Ladakh, Lakshadweep, Andaman & Nicobar Islands, and Dadra & Nagar Haveli and Daman & Diu, UTGST replaces SGST. Delhi, Puducherry and Jammu & Kashmir have their own legislatures, so they use SGST.
Finding the place of supply
- Goods: usually where the goods are delivered (where the movement ends).
- Most services to a registered business: the buyer's location.
- Most services to an unregistered person: the buyer's address on record, if you have one; otherwise your location.
- Services tied to property (construction, interior work, hotel stays): where the property is.
- Events and admissions: where the event takes place.
Worked example
A Pune designer bills a Mumbai client ₹10,000 at 18%: both are in Maharashtra, so CGST ₹900 + SGST ₹900. Billing a Bengaluru client instead: IGST ₹1,800.
How Fliss Invoice helps
Pick the client and their state fills in as the place of supply. Fliss Invoice compares it with your state and chooses CGST + SGST or IGST for you, and shows UTGST where it applies.
This guide is general information to help you get started. It is not tax or legal advice; rules and rates change, so confirm details with your accountant or the official GST notifications.
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