# Inter-State vs Intra-State Supply: CGST+SGST or IGST?

**Category:** GST | **Published:** 2026-06-26 | **Last reviewed:** 2026-06-26 | **Author:** Mrs. Swapna Patel

Whether a supply is inter-state or intra-state decides which tax appears on the invoice: an intra-state supply carries CGST plus SGST, while an inter-state supply carries IGST. The classification is set by Sections 7 and 8 of the IGST Act, which compare two coordinates, the location of the supplier and the place of supply. Same state for both means intra-state (CGST+SGST); different states or union territories means inter-state (IGST). A few supplies are inter-state by law even within one state, most notably supplies to a Special Economic Zone, imports, and exports under Section 7(5). Charging the wrong type is fixable: Section 77 of the CGST Act and Section 19 of the IGST Act let you reclaim tax paid under the wrong head, without interest, once you pay the correct one.

> **Myth:** A supply is inter-state only when the buyer is in another state, and intra-state when the buyer is in your state.
>
> **Fact:** Under [Sections 7 and 8 of the IGST Act](https://www.indiacode.nic.in/handle/123456789/2367) it is decided by comparing the supplier's location with the place of supply, and a supply inside one state can still be inter-state, for example a supply to an SEZ unit.

## What makes a supply inter-state or intra-state?

> **Short answer:** Two coordinates under [Sections 7 and 8 of the IGST Act](https://www.indiacode.nic.in/handle/123456789/2367): the supplier's location and the place of supply. Same state for both is intra-state; different states or union territories is inter-state.

The buyer's billing address alone does not decide it. You compare where the supplier is located against the place of supply, which for goods is usually the delivery point and for services is usually the recipient's location. For how the place of supply itself is fixed, see [place of supply in GST](/answers/gst-place-of-supply-cgst-sgst-vs-igst).

- Section 8 (intra-state): supplier and place of supply in the same state or UT.
- Section 7 (inter-state): supplier and place of supply in different states or UTs.
- Why it matters: the test is location-versus-place-of-supply, not simply where the customer lives.

## How does the classification change which GST you charge?

> **Short answer:** An intra-state supply carries [CGST plus SGST](/answers/cgst-sgst-igst-three-gst-components) in two equal halves; an inter-state supply carries a single IGST at the combined rate. The total tax is the same, only the split and the destination differ.

| Supply type | Tax charged | Example at an 18% rate |
| --- | --- | --- |
| Intra-state (Section 8) | CGST + SGST | 9% CGST + 9% SGST |
| Inter-state (Section 7) | IGST | 18% IGST |

*The split under [Sections 7 and 8, IGST Act](https://www.indiacode.nic.in/handle/123456789/2367). The 18% figure is one common services rate used for illustration; apply the rate notified for your specific supply, as [CBIC](https://cbic-gst.gov.in/) slabs change. For the three components, see [CGST, SGST and IGST explained](/answers/cgst-sgst-igst-three-gst-components).*

**[Generate an invoice that applies the correct CGST/SGST or IGST split](https://hrareceipt.in/pakka-bill)**

## When is a supply inter-state even within the same state?

> **Short answer:** A handful of supplies are inter-state by law regardless of geography under [Section 7(5) of the IGST Act](https://www.indiacode.nic.in/handle/123456789/2367), most importantly a supply to or by a Special Economic Zone unit, plus imports and exports.

- SEZ supplies: selling to an SEZ unit in your own city is still an inter-state supply, so it attracts IGST (or moves under zero-rating).
- Imports of goods or services are treated as inter-state supplies.
- Exports are inter-state and zero-rated; see [export of services under GST](/answers/export-of-services-gst-section-2-6-igst).
- Why it matters: these carve-outs catch sellers who assume a local delivery address always means CGST+SGST.

## Can you fix a CGST/SGST vs IGST mix-up?

> **Short answer:** Yes. [Section 77 of the CGST Act and Section 19 of the IGST Act](https://www.indiacode.nic.in/handle/123456789/2406) let you reclaim tax paid under the wrong head, without interest, once you pay the tax under the correct head.

- If you charged IGST on what was an intra-state supply (or the reverse), you are not penalised for the classification error itself.
- You pay the correct tax, then claim a refund of the tax wrongly paid under the other head, and no interest is charged on the corrected amount.
- Why it matters: the remedy removes the fear of a double cash hit, but you still have to spot the error and act, so getting the classification right on the [tax invoice](/pakka-bill) first is cheaper than unwinding it.

**[Raise a GST invoice with the right tax type from the start](https://hrareceipt.in/pakka-bill)**

## Primary sources

- [Section 7, Integrated Goods and Services Tax Act 2017 (inter-state supply) — India Code](https://www.indiacode.nic.in/handle/123456789/2367) — Supplier and place of supply in different states; also imports, exports, and SEZ supplies.
- [Section 8, IGST Act 2017 (intra-state supply) — India Code](https://www.indiacode.nic.in/handle/123456789/2367) — Supplier and place of supply in the same state or union territory.
- [Section 77, CGST Act 2017 and Section 19, IGST Act 2017 (wrong tax paid) — India Code](https://www.indiacode.nic.in/handle/123456789/2406) — Refund of tax paid under the wrong head, without interest, on paying the correct tax.

## Related

- [Place of supply in GST: CGST+SGST or IGST?](https://hrareceipt.in/answers/gst-place-of-supply-cgst-sgst-vs-igst)
- [CGST, SGST and IGST: the three GST components](https://hrareceipt.in/answers/cgst-sgst-igst-three-gst-components)
- [Export of services under GST: when a foreign client is an export](https://hrareceipt.in/answers/export-of-services-gst-section-2-6-igst)

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*Source: [Inter-State vs Intra-State Supply: CGST+SGST or IGST?](https://hrareceipt.in/answers/inter-state-vs-intra-state-supply-gst) — HRAReceipt.in*
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