GST · 25 June 2026
What Is UTGST, and When Does CGST + UTGST Replace CGST + SGST?
UTGST, Union Territory GST, is the state-equivalent component of GST levied in a Union Territory that has no legislature of its own. Where an ordinary state charges CGST + SGST on an intra-state supply, such a Union Territory charges CGST + UTGST, levied under the UTGST Act 2017. The mechanics are identical to CGST + SGST: the rate splits in half, one half to the Centre and one half to the Union Territory, and a wrong head fails the same return reconciliation. UTGST applies in Union Territories without a legislature; the Union Territories that do have a legislature (Delhi, Puducherry, and Jammu and Kashmir) levy SGST through their own GST Acts instead. Inter-state supplies are unaffected; they still carry a single IGST.
By Mrs. Swapna Patel
Last reviewed
25 June 2026
In this section
Answers
- What Is UTGST, and When Does CGST + UTGST Replace CGST + SGST?
- What Is a Pakka Bill? The GST Invoice That Counts as Valid
- What Is a Kaccha Bill? Why the Rough Slip Has No GST Standing
- Why Move From a Kaccha Bill to a Pakka Bill?
- How to Upgrade From a Kaccha Bill to a Pakka Bill (GST Invoice)
- 5 GST Invoice Mistakes That Trigger a Tax Notice (And How to Fix Them)
- 7 Fields Every Skilled Professional Must Put on a GST Invoice: Rule 46 Checklist
- What Makes a GST Invoice Legally Binding — And Why Clients Pay Faster When It Is
- What Is a Bill of Supply? The GST Document Without Tax
- What Is an IRN (Invoice Reference Number) Under GST?
Every intra-state supply is charged as CGST + SGST, everywhere in India.
In a Union Territory without its own legislature, the state half of GST is levied as UTGST under the UTGST Act 2017, so the split is CGST + UTGST, not CGST + SGST.
What is UTGST?
Short answer
UTGST, Union Territory GST, is the state-equivalent half of GST, levied under the UTGST Act 2017 in a Union Territory that has no legislature of its own. It plays the role SGST plays in a state.
- GST has a central half (CGST) and a state half. In a state, the state half is SGST; in a legislature-less Union Territory, it is UTGST.
- UTGST is collected by the Union Territory administration, the same way SGST is collected by a state government.
- It exists because such a Union Territory has no state legislature to enact its own State GST Act, so Parliament enacted the UTGST Act to supply the state component.
- The rate and base are identical to SGST; only the levying statute and the recipient of the state half differ.
When does CGST + UTGST replace CGST + SGST?
Short answer
On an intra-state (here, intra-UT) supply made within a Union Territory that has no legislature: the supply is charged CGST + UTGST instead of CGST + SGST. The same-state test under Sections 7–8 of the IGST Act still decides intra versus inter-state.
- Same place-of-supply test as everywhere: if supplier location and place of supply are in the same Union Territory, the supply is intra-state and carries CGST + UTGST.
- If they are in different states or Union Territories, the supply is inter-state and carries a single IGST, exactly as elsewhere.
- An 18% rate becomes 9% CGST plus 9% UTGST, mirroring the CGST + SGST split.
- Why it matters: the buyer claims credit under the head charged, so a UTGST supply wrongly invoiced as SGST (or vice versa) mismatches at reconciliation, the same risk as any wrong tax head. See our place-of-supply guide.
Which Union Territories use UTGST and which use SGST?
Short answer
Union Territories without a legislature levy UTGST; the ones that have a legislature, Delhi, Puducherry, and Jammu and Kashmir, levy SGST through their own State GST Acts instead.
| Territory type | State-half component | Why |
|---|---|---|
| UT without legislature (e.g. Chandigarh, Lakshadweep, Andaman and Nicobar, Ladakh, Dadra and Nagar Haveli and Daman and Diu) | UTGST | No state legislature, so the UTGST Act supplies the state component |
| UT with legislature (Delhi, Puducherry, Jammu and Kashmir) | SGST | Has its own legislature and State GST Act, so SGST applies as in a state |
| Any state | SGST | State legislature enacts the State GST Act |
Source: UTGST Act 2017. The list of Union Territories and their legislature status can change by constitutional amendment, so confirm a territory's current status before finalising your tax head.
Does UTGST change anything on my invoice fields?
Short answer
No, beyond the tax head: the invoice still follows Rule 46, but the state-half line reads UTGST instead of SGST for an intra-UT supply in a legislature-less Union Territory.
- Place of supply remains a mandatory Rule 46 field; it is what flags the supply as intra-UT in the first place. See what fields a GST tax invoice must carry.
- The tax split shows CGST + UTGST rather than CGST + SGST; everything else on the invoice is unchanged.
- For the broader picture of the three (now four) components, see CGST, SGST and IGST: the three GST components.
- A pakka bill generator applies the place-of-supply test and labels the correct state-half head, so an intra-UT supply carries CGST + UTGST from the first download.
References & related
Primary sources
- Union Territory Goods and Services Tax Act 2017 — India CodeLevy of UTGST in a Union Territory without a legislature, mirroring SGST.
- Section 9, Central Goods and Services Tax Act 2017 (CGST levy) — India CodeThe central half of GST, levied alongside UTGST on an intra-UT supply just as it is alongside SGST.
- Sections 7–8, IGST Act 2017 (inter-state vs intra-state supply) — India CodeThe same-state versus different-state test that decides CGST + UTGST/SGST versus IGST.
- GST portal — CBICOfficial reference for the UTGST component and applicable Union Territories.
Last reviewed: 25 June 2026