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CGST, SGST and IGST Explained with Examples

Updated 22 Oct 2026 · 2 min read

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GST in India has three parts that confuse many small business owners. The rule is actually simple.

The rule

  • Sale within your state: charge CGST + SGST (or UTGST), each half of the GST rate
  • Sale to another state: charge IGST at the full rate
  • The state that matters is the place of supply, usually where your customer is

Example: ₹10,000 at 18%

  • Same state: CGST 9% = ₹900, SGST 9% = ₹900, total ₹11,800
  • Other state: IGST 18% = ₹1,800, total ₹11,800

The customer pays the same total. Only the split is different.

Removing GST from a price that already includes it

Price without GST = price with GST ÷ (1 + rate/100). For ₹11,800 at 18%: 11,800 ÷ 1.18 = ₹10,000.

Try it with the free GST calculator, then make a proper bill with the GST invoice generator.

General information only, not tax advice.

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