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A customer in another state ordered, do I charge IGST or CGST + SGST?

The short answer

GST is a destination-based tax, so what matters is the 'place of supply', where the goods are delivered. Ship inside your own state and you charge CGST + SGST; ship to any other state and you charge IGST at the same total rate, so the customer pays the same tax either way. Your billing tool splits this automatically from the buyer's shipping pincode, so you rarely calculate it by hand.

A quick summary to orient you. The real value is below: the resources worth your time, from people who've actually done it, not us.

Here are the resources

Hand-picked from around the web, each with a note on why it earns your time. India-specific ones carry a badge.

4 resources 4 India-specific 4 link-checked

Read

📄 Article
✓ Link checked India Free Intermediate

Why we picked it Place of supply is the concept that decides IGST vs CGST+SGST on every order, this explains the delivery-location rule with worked examples so it finally clicks.

Place of Supply of Goods

From ClearTax by ClearTax

  • Place of supply is where goods are delivered, not where you ship from
  • Determines whether IGST or CGST+SGST applies
  • Includes practical inter-state vs intra-state examples
Open cleartax.in
📄 Article
✓ Link checked India Free Beginner

Why we picked it The clearest breakdown of the four GST components and how input credit flows between them, foundational reading before you look at a single invoice.

Types of GST: What is SGST, CGST, IGST and UTGST?

From ClearTax by ClearTax

  • CGST + SGST apply within a state; IGST applies across states
  • Explains the ITC utilisation/set-off order
  • Comparison table by jurisdiction and applicability
Open cleartax.in
📄 Article
✓ Link checked India Free Intermediate

Why we picked it Written from an accounting-software lens, it shows how place of supply is configured on real invoices, handy if you'll run books in Zoho and want the tax auto-split correctly.

GST | Place of Supply

From Zoho Books by Zoho Books (Zoho Finance)

  • Place of supply is the recipient's location for most goods
  • Software auto-applies IGST or CGST+SGST from customer state
  • Correct customer addresses are essential for right tax
Open zoho.com

People also ask

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