Understanding Goods and Services Tax (GST) in India
GST is a unified multi-stage destination-based tax system introduced in India in 2017 to eliminate tax cascading and merge multiple central and state taxes into a single structure.
CGSTCentral GST levied by the Central Government on intra-state supply transactions (50% of the standard slab).
SGST / UTGSTState GST collected by the State Government or Union Territory on intra-state supplies.
IGSTIntegrated GST levied by the Central Government for inter-state supply transactions (100% of standard slab goes to buyer consumption state).
Tip: If your buyer is located in the same state as your warehouse, always divide the GST equally into CGST and SGST. For customers in any other Indian state, levy Integrated IGST.