GST6 min read

CGST vs SGST vs IGST: How GST Tax Splits Work for Your Shop

managemycounter Team·

The Three Components of GST

India's Goods and Services Tax has three components. Which one applies depends entirely on where the buyer and seller are located.

CGST (Central GST)

Collected by the central government on intra-state supplies. Rate = half of the total GST rate.

SGST (State GST)

Collected by the state government on intra-state supplies. Rate = half of the total GST rate.

IGST (Integrated GST)

Collected by the central government on inter-state supplies. Rate = the full GST rate (no split).

Real Example

Your shop is in Delhi. You sell to a customer in Delhi:

  • GST rate = 18%
  • You charge: 9% CGST + 9% SGST = 18%

Same shop, sale to a customer in Mumbai:

  • GST rate = 18%
  • You charge: 18% IGST (no CGST/SGST split)

Why This Matters for Your Billing

Getting this wrong means:

  • Under-charging tax → liability falls on you
  • Over-charging tax → customer may dispute
  • Wrong return filing → notices from GST department

How Software Helps

A proper billing system like managemycounter:

  • Compares your business state vs customer state automatically
  • Computes the correct tax split
  • Generates audit-ready GST invoices every time
  • Produces GSTR-1 ready exports at month-end

No manual calculation, no errors, no compliance headache.

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GST billing, udhaar khata, stock management — all in one app. Free during beta.