Taxation · GST in India - An Introduction

GST Model and Structure: CGST, SGST, UTGST and IGST

Updated 4 October 2026 · Fact-checked

India follows a dual GST model: the Centre and the States both levy GST on the same supply. An intra-state supply attracts CGST plus SGST (or UTGST in a Union territory without legislature). An inter-state supply attracts only IGST. To solve a question, first find the location of supplier and place of supply, then pick the levy.

Understand GST Model and Structure: CGST, SGST, UTGST, IGST

Before GST, the Centre taxed manufacture and services, and States taxed sale of goods. Taxes piled on taxes. GST replaced this with one tax on supply of goods or services. Because India is a federation, both the Centre and the States have the power to tax, so GST is levied in a dual form.

Under the dual model, one supply carries two components. The Centre collects CGST under the CGST Act, 2017. The State collects SGST under its own State GST Act. Both are levied on the same transaction value and at equal rates for a given supply. The CGST and SGST rates are each half of the total GST rate.

UTGST is the State-type tax for Union territories without a legislature: Andaman and Nicobar Islands, Lakshadweep, Dadra and Nagar Haveli and Daman and Diu, Chandigarh and Ladakh. It is levied under the UTGST Act, 2017, and on intra-state supplies it is charged along with CGST. Delhi and Puducherry are treated as States for GST because they have legislatures, so they levy SGST. Jammu and Kashmir has its own GST Act and also levies SGST.

IGST is levied under the IGST Act, 2017 on inter-state supplies, and on imports and exports. The Centre collects it and then apportions the State share to the destination State. This keeps the system consumption based: the tax goes to the State where the goods or services are consumed. IGST rate equals CGST rate plus SGST rate.

The test is simple. If the location of supplier and place of supply are in the same State or Union territory, it is intra-state. If they are in different States or Union territories, it is inter-state. Import into India and supply to or by a SEZ developer or unit are also treated as inter-state supplies.

Key rules to remember

Intra-state supply: Total GST = CGST + SGST (or CGST + UTGST in a Union territory without legislature); CGST and SGST (or UTGST) are charged at equal rates, each half of the GST rate.
Inter-state supply: Total GST = IGST = CGST rate + SGST rate; Only IGST is charged. Never charge CGST or SGST on the same inter-state supply.
Intra-state test: Location of supplier and place of supply in the same State or Union territory; If they differ, the supply is inter-state. Imports are inter-state.
Tax computation: GST amount = Value of supply × GST rate ÷ 100; Split into two equal halves for CGST and SGST/UTGST on intra-state supply.
Governing laws: CGST Act, 2017; SGST Acts of States; UTGST Act, 2017; IGST Act, 2017; Intra-state levy is under CGST plus SGST or UTGST. Inter-state levy is under the IGST Act.

How to solve GST Model and Structure: CGST, SGST, UTGST, IGST questions

Use this method for any question asking which GST applies, or how much of each component is charged.

1Note the location of the supplier and the place of supply. Use the place of supply, not just where the buyer is registered.
2Compare the two. Same State or Union territory means intra-state. Different means inter-state. Import is inter-state.
3For intra-state, check whether the State has a legislature. If yes, charge CGST + SGST. If it is a Union territory without legislature, charge CGST + UTGST.
4For inter-state, charge only IGST at the full GST rate.
5Compute the tax on the value of supply and split it equally where CGST and SGST/UTGST apply.
6State the governing Act for each component in one line.
7Write the conclusion in a sentence: the type of supply, the taxes charged and the amounts.

Quickest way: Same place or different place

When to use it: For MCQs and short descriptive questions on which tax applies.

Underline the supplier's State and the place of supply.
Same State: CGST + SGST. Same Union territory without legislature: CGST + UTGST.
Different State or Union territory: IGST only.
In numbers, halve the rate for CGST and SGST. For IGST use the full rate.
In descriptive answers, write: provision, facts, conclusion, with the Act name once.

Common mistakes in GST Model and Structure: CGST, SGST, UTGST, IGST

Charging CGST and SGST on an inter-state supply.
Students remember dual GST and apply it to every supply.
Fix: Dual levy applies only to intra-state supply. Inter-state supply attracts only IGST.
Treating Delhi and Puducherry as UTGST territories.
They are Union territories, so students assume UTGST.
Fix: UTGST applies only to Union territories without a legislature. Delhi and Puducherry have legislatures and levy SGST.
Deciding inter-state or intra-state by the buyer's registration or delivery address alone.
Students ignore the term place of supply.
Fix: Compare the supplier's location with the place of supply as determined under the IGST Act.
Using the full rate for CGST and again for SGST.
Students confuse the total rate with the component rate.
Fix: Each of CGST and SGST is half of the total rate. For an 18% supply, CGST is 9% and SGST is 9%.
Saying IGST is a Centre-only tax that States never receive.
The Centre collects it, so students assume it keeps it.
Fix: The Centre collects IGST and apportions the State share to the destination State.

Worked examples

Example 1

A registered dealer in Pune (Maharashtra) sells goods worth ₹2,00,000 to a dealer in Nagpur (Maharashtra). GST rate is 18%. Identify the taxes and compute the amounts.

Show the solution

Supplier's location is Maharashtra. Place of supply is Maharashtra.
Both are in the same State, so this is an intra-state supply.
Intra-state supply attracts CGST + SGST.
Total GST = 2,00,000 × 18% = ₹36,000.
CGST = 9% × 2,00,000 = ₹18,000. SGST = 9% × 2,00,000 = ₹18,000.

Answer: CGST of ₹18,000 under the CGST Act and SGST of ₹18,000 under the Maharashtra GST Act are charged. Total GST is ₹36,000.

Example 2

A registered dealer in Jaipur (Rajasthan) supplies goods worth ₹5,00,000 to a dealer in Chennai (Tamil Nadu). GST rate is 12%. Identify the tax and compute it. Also state what changes if the buyer is in Chandigarh.

Show the solution

Supplier's location is Rajasthan. Place of supply is Tamil Nadu.
The States differ, so this is an inter-state supply.
Only IGST is charged, at the full rate of 12%.
IGST = 5,00,000 × 12% = ₹60,000.
IGST equals CGST 6% plus SGST 6%, but only IGST is levied.
If the buyer is in Chandigarh: supplier is in Rajasthan and place of supply is in Chandigarh, a Union territory. They are different, so the supply is inter-state and IGST of ₹60,000 (12% of ₹5,00,000) applies.
UTGST would apply only if both the supplier and the place of supply were in Chandigarh.

Answer: IGST of ₹60,000 is charged under the IGST Act. No CGST or SGST applies. For a buyer in Chandigarh the answer is the same: the supply is inter-state because Rajasthan and Chandigarh differ, so IGST of ₹60,000 applies. UTGST would apply only if both were in Chandigarh.

Exam tips

In MCQs, the first filter is location versus place of supply. Do this before reading the options.
Remember the list of Union territories without legislature. Questions often test Delhi or Puducherry as traps.
Show the rate split (CGST 9% + SGST 9% = IGST 18%) in numerical answers to earn step marks.
In theory answers, name the Act for each tax: CGST Act, SGST Act, UTGST Act and IGST Act.
Check for imports, exports or SEZ facts. They are treated as inter-state supplies.

Practice questions from GST in India - An Introduction

GST Model and Structure: CGST, SGST, UTGST, IGST in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

CS ExecutiveOverview of GST: Structure, Types and Taxable Event

GST Model and Structure: CGST, SGST, UTGST, IGST: frequently asked questions

What is the dual GST model in India?

Both the Centre and the States levy GST on the same supply. On an intra-state supply, the Centre charges CGST and the State charges SGST. On an inter-state supply, the Centre charges IGST and shares the State portion with the destination State.

What is the difference between CGST, SGST and IGST?

CGST goes to the Centre and SGST goes to the State, and both apply on intra-state supply. IGST applies on inter-state supply, imports and exports, and is collected by the Centre. IGST rate equals CGST rate plus SGST rate.

Where does UTGST apply?

UTGST applies on intra-state supplies in Union territories without a legislature, along with CGST. Examples are Andaman and Nicobar Islands, Lakshadweep, Dadra and Nagar Haveli and Daman and Diu, Chandigarh and Ladakh. Delhi and Puducherry levy SGST instead.

How does IGST work on inter-state supply?

The supplier charges IGST at the full rate. The Centre collects it and passes the State share to the State where the goods or services are consumed. This is how the system stays destination based.