How to decide between CGST plus SGST and IGST on an invoice, using the place of supply, with worked examples and how to print each on the bill.
The one question to ask
Is the place of supply in the same state (or union territory) as the supplier? If yes, the supply is intra-state and you charge CGST plus SGST (or UTGST). If no, it is inter-state and you charge IGST. The total tax is the same; only the split changes.
| Supplier in | Place of supply | Charge | Example on an 18% item worth 10,000 |
|---|---|---|---|
| Gujarat | Gujarat | CGST + SGST | CGST 900 + SGST 900 |
| Gujarat | Maharashtra | IGST | IGST 1,800 |
| Delhi | Chandigarh (UT) | IGST | IGST 1,800 |
| Chandigarh | Chandigarh | CGST + UTGST | CGST 900 + UTGST 900 |
How place of supply is decided
- Goods with movement: usually where the movement ends, that is where the goods are delivered.
- Goods without movement: where the goods are when delivered.
- Most services to a registered buyer: the buyer location.
- Services to an unregistered buyer: the buyer address on record, or the supplier location if there is none.
- Special services (immovable property, events, transport) have their own rules.
These are general rules. For special services and exports, check the GST Council place of supply guidance or ask your accountant.
How to show it on the invoice
Print “Place of supply: State name (code)”. On an intra-state invoice, show CGST and SGST as two lines, each at half the rate. On an inter-state invoice, one IGST line at the full rate. The invoice generator does this automatically from the place of supply you select.
Exports and SEZ
Exports and supplies to SEZ units are treated as inter-state supplies. Under GST they are zero rated: either you pay IGST and claim a refund, or you supply under a bond or letter of undertaking without paying IGST. The invoice carries the matching endorsement. See the export invoice format.
Frequently asked questions
What happens if I charge the wrong tax?
You may have to pay the right tax and claim a refund of the wrong one, which is slow. Getting place of supply right first time avoids this.
Is the GST rate different for IGST?
No. IGST equals CGST plus SGST. 18% IGST is the same as 9% CGST plus 9% SGST.
What is UTGST?
Union Territory GST, charged instead of SGST on supplies within a union territory without its own legislature, such as Chandigarh.
Checked and updated 14 Oct 2026. Independent template site; not tax or legal advice.