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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.

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Myth

Every intra-state supply is charged as CGST + SGST, everywhere in India.

Fact

In a Union Territory without its own legislature, the state half of GST is levied as UTGST under the UTGST Act 2017[1], 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[1] 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[3] 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.
Place-of-supply decision flow: a same-state supply is charged the central tax plus the state-or-UT tax (CGST + SGST, or CGST + UTGST in a legislature-less Union Territory), while a different-state supply is charged a single IGST.
The same intra-state versus inter-state test applies; in a legislature-less Union Territory the state half is UTGST. See the place-of-supply exhibit.

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 typeState-half componentWhy
UT without legislature (e.g. Chandigarh, Lakshadweep, Andaman and Nicobar, Ladakh, Dadra and Nagar Haveli and Daman and Diu)UTGSTNo state legislature, so the UTGST Act supplies the state component
UT with legislature (Delhi, Puducherry, Jammu and Kashmir)SGSTHas its own legislature and State GST Act, so SGST applies as in a state
Any stateSGSTState legislature enacts the State GST Act

Source: UTGST Act 2017[1]. 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.
Generate a GST invoice with the correct CGST + UTGST or SGST split

References

  1. 1.Union Territory Goods and Services Tax Act 2017 — India Code — Levy of UTGST in a Union Territory without a legislature, mirroring SGST.
  2. 2.Section 9, Central Goods and Services Tax Act 2017 (CGST levy) — India Code — The central half of GST, levied alongside UTGST on an intra-UT supply just as it is alongside SGST.
  3. 3.Sections 7–8, IGST Act 2017 (inter-state vs intra-state supply) — India Code — The same-state versus different-state test that decides CGST + UTGST/SGST versus IGST.
  4. 4.GST portal — CBIC — Official reference for the UTGST component and applicable Union Territories.

References & related

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