CGST vs SGST vs IGST vs UTGST: Comparison 2026
Every GST invoice you raise carries one of two possible tax structures, either CGST plus SGST, or IGST alone, and which one applies isn’t a choice, it’s determined entirely by where the transaction happens. The CGST vs SGST vs IGST vs UTGST 2026 confusion trips up even experienced business owners, because the four types aren’t four different taxes so much as four different ways the same GST amount gets split and routed. Get the split wrong, and you end up paying tax under the wrong head, which means interest and a correction, even if the total amount you paid was accurate. For GST fundamentals before this deep dive, see my GST basics guide.
The Four Types, Defined Properly
CGST (Central GST), levied under the CGST Act 2017 by the Central Government, applies to intra-state supplies, transactions where the supplier and the place of supply are in the same state.
SGST (State GST), levied under each state’s own SGST Act, applies alongside CGST on the same intra-state transaction. The two are always charged together on intra-state supplies, never one without the other.
IGST (Integrated GST), levied under the IGST Act 2017 by the Central Government, applies to inter-state supplies, where the supplier and the place of supply are in different states, as well as imports into India and exports out of it.
UTGST (Union Territory GST) works exactly like SGST, but applies specifically to Union Territories that don’t have their own legislature, since those UTs can’t pass their own SGST Act. It’s charged alongside CGST, just like SGST, on intra-UT supplies.
CGST vs SGST vs IGST vs UTGST 2026: Side by Side
| Factor | CGST | SGST | IGST | UTGST |
|---|---|---|---|---|
| Governing law | CGST Act, 2017 | Respective State’s SGST Act | IGST Act, 2017 | UTGST Act, 2017 |
| Applies to | Intra-state supplies | Intra-state supplies | Inter-state supplies, imports, exports | Intra-UT supplies (UTs without legislature) |
| Levied by | Central Government | State Government | Central Government | Central Government |
| Revenue goes to | Central Government | The respective State Government | Shared between Centre and destination State | The respective Union Territory |
| Rate on an 18% transaction | 9% | 9% | 18% (full amount) | 9% |
| Charged with | SGST (always together) | CGST (always together) | Alone | CGST (always together) |
This split applies whatever the underlying GST rate is. Since GST 2.0 simplified the rate structure to primarily 5% and 18%, with 0% for essentials and 40% for luxury and sin goods, the same intra-state versus inter-state split now applies cleanly across these fewer slabs. My GST new rates guide has the complete item-wise breakdown of what falls where.
What Actually Decides Which Type Applies: Place of Supply
This is the single most important concept in this whole comparison, and it’s where most classification mistakes happen. GST is a destination-based tax, meaning it’s collected where the goods or services are consumed, not where the supplier is located. The place of supply, not the supplier’s location alone, decides everything.
For goods involving movement, the place of supply is where the movement ends, the delivery location. For services to a registered business (B2B), the default rule is the location of the recipient. For services to individual consumers (B2C), it’s generally the supplier’s location, though several specific exceptions exist for things like restaurant services, event admission, and transportation.
Once you know the place of supply, the rule is simple: if the supplier’s location and the place of supply are in the same state or union territory, it’s intra-state, and you charge CGST plus SGST or UTGST. If they’re in different states, it’s inter-state, and you charge IGST instead. Exports are treated as inter-state supplies too, but they’re zero-rated, meaning no GST is actually charged, while imports attract IGST at the point of customs clearance.
If your turnover crosses Rs. 5 crore and you fall under mandatory e-invoicing, this classification happens automatically at the point of invoice generation: the Invoice Registration Portal validates your declared place of supply against the buyer’s GSTIN state code before issuing an IRN, which catches a lot of these classification errors before they ever reach a return. My GST e-invoice guide covers how that validation works in practice.
The Order You Must Use ITC In: Why CGST and SGST Can Never Mix
Once you’re registered and have Input Tax Credit sitting in your electronic credit ledger from CGST, SGST, and IGST paid on your own purchases, you can’t use it however you like. Section 49A, Section 49B, and Rule 88A of the CGST Act prescribe a strict order.
IGST credit must be used first, and it can be applied against IGST, CGST, or SGST/UTGST liability, in any order or proportion. Only once your IGST credit is fully exhausted can you move to your CGST and SGST credit.
CGST credit must first clear your CGST liability. Any leftover can go toward residual IGST liability, but it can never be used to pay SGST or UTGST.
SGST or UTGST credit works the mirror opposite way: it must first clear your SGST/UTGST liability, with any leftover going toward residual IGST, but it can never be used to pay CGST.
This CGST-SGST cross-utilisation ban is permanent and hasn’t changed. What did change, from a GSTN portal update in February 2026, is the flexibility around how CGST and SGST credit get applied toward leftover IGST liability after your IGST credit is exhausted: the portal now lets you choose the sequence yourself rather than forcing CGST first, then SGST. Worth noting, though, some businesses have reported the portal occasionally reverting to the older forced sequence, so it’s worth checking your GSTR-3B credit utilisation screen at filing time rather than assuming the flexible order is always available.
Which States and UTs Use UTGST vs SGST
Not every Union Territory uses UTGST. Delhi, Jammu & Kashmir, and Puducherry each have their own legislature, so they levy SGST like any state does. UTGST applies specifically to the UTs without a legislature: Chandigarh, Lakshadweep, Andaman and Nicobar Islands, and Dadra and Nagar Haveli and Daman and Diu. If your business supplies within one of these territories, you’re charging CGST plus UTGST, not CGST plus SGST, even though the mechanics work identically.
Conclusion
CGST, SGST, IGST, and UTGST aren’t four separate taxes competing for your attention, they’re one tax, GST, split and routed differently depending on where a transaction actually happens. Get the place of supply right, and the correct tax type follows automatically. Get it wrong, and you’re looking at tax paid under the wrong head, interest, and a correction that eats into time you’d rather spend running the business. The ITC set-off order matters just as much for cash flow: understanding that CGST and SGST credit can never cross over means you can plan your purchases and pricing with a realistic picture of what you’ll actually owe in cash each period, not just what your credit ledger shows on paper. GST sits alongside income tax as one of the two pillars of your compliance calendar, and if you want the fuller picture of how the two interact, my direct tax vs indirect tax guide covers where GST fits in the broader system.
Frequently Asked Questions
How do I know if I should charge CGST plus SGST or IGST?
Check the place of supply against your own location. If both are in the same state or UT, charge CGST plus SGST (or UTGST). If they’re in different states, charge IGST instead.
Can I use my CGST credit to pay my SGST liability if I’m short on cash?
No. This cross-utilisation is permanently banned under GST law. CGST credit can only offset CGST liability and, if there’s a surplus, residual IGST liability, never SGST or UTGST.
What happens if I charge CGST and SGST on a transaction that should have been IGST?
You’ll need to pay the correct IGST amount along with interest, and you can claim a refund of the wrongly paid CGST and SGST. This is treated as tax paid under the wrong head, not as a legitimate offset against your real liability.
Does UTGST apply differently from SGST in terms of rates?
No, the rates are identical. The only difference is which UTs it applies to and that the revenue goes to the Union Territory administration rather than a state government.
Is IGST higher than CGST plus SGST combined?
No. IGST equals the sum of what CGST and SGST would have been on the same transaction. An 18% intra-state sale means 9% CGST plus 9% SGST, while an 18% inter-state sale means 18% IGST, the same total tax either way. You can check the official rate structure and GST law on the Income Tax Department’s website and the CBIC GST portal.
