CGST + SGST vs IGST: Which Applies to Your Invoice?
Last reviewed: September 29, 2026
Every GST invoice shows tax in one of two ways: split into CGST and SGST, or as a single IGST amount. The total tax is the same. What changes is which government receives it, and that depends on whether the supply is within one state or between states.
The rule in one line
- Intra-state (your location and the place of supply are in the same state): charge CGST + SGST, each at half the rate. In union territories without a legislature, UTGST replaces SGST.
- Inter-state (your location and the place of supply are in different states): charge IGST at the full rate.
Where is the place of supply for services?
For most services, the general rule is: if your client is registered for GST, the place of supply is your client's location, usually the state on their GSTIN. If your client is not registered, it is their address on record, or your own location if you do not have their address. Some services have special rules, for example services related to property or events, so check with your CA if your work falls into one of those.
Examples at 18%
For a freelancer registered in Karnataka billing ₹1,00,000:
| Client | Type | Tax on the invoice |
|---|---|---|
| Registered business in Bengaluru, Karnataka | Intra-state | CGST 9% ₹9,000 + SGST 9% ₹9,000 |
| Registered business in Pune, Maharashtra | Inter-state | IGST 18% ₹18,000 |
| Company in the United States | Export of services | Zero-rated: usually no GST under LUT (see below) |
In each case the client pays ₹1,18,000 in total within India. Only the split differs. GST rates vary by service, so confirm the rate for your SAC code.
Clients outside India: export of services
Services to a foreign client are generally an export of services, and exports are zero-rated. That usually means one of two things:
- Export under a Letter of Undertaking (LUT): you file an LUT on the GST portal, charge no GST, and state on the invoice that the supply is meant for export under LUT without payment of integrated tax. Most freelancers choose this.
- Pay IGST and claim a refund of it later.
To count as an export, broadly: you are in India, your client is outside India, the place of supply is outside India, you are paid in convertible foreign currency (or in rupees where the RBI allows), and you and your client are not simply two establishments of the same business.
Setting it up in eInvoicePad
- Open the GST invoice generator or the Tax tab of the invoice generator, choose Indian Rupee, and switch on GST.
- Choose Same state for CGST + SGST or Other state for IGST, enter the full rate (e.g. 18), and add the place of supply. The split is calculated for you.
- For exports under LUT, leave GST switched off, invoice in the client's currency, and add the LUT statement to the work description.
This guide is general information about Indian GST and invoicing, not tax or legal advice. Rules and thresholds change, so check the current position with a chartered accountant or tax adviser. See our Disclaimer.