GST Tax Heads by State

Maharashtra levies the State half of GST as SGST because it is a State with an elected legislature. The legal basis is the Maharashtra Goods and Services Tax Act, 2017, the State mirror of the central CGST Act, 2017. Every rupee of SGST collected on an intra-Maharashtra sale accrues to the Maharashtra exchequer; the matching CGST half goes to the Centre.

The split flips the moment the place of supply leaves the state. A Mumbai or Pune seller billing a buyer in Gujarat (code 24) or Karnataka (code 29) makes an inter-state supply under IGST Act §7. That invoice carries one IGST line at the full rate, with no CGST or SGST column. The test is the two-digit code: the supplier code means intra-state, a different code means IGST.

Maharashtra is one of India’s highest-volume GST states. The usual mistake here is the place-of-supply trigger, not the head name: charging CGST + SGST on a dispatch that crosses a state line and should carry IGST. Get the code wrong and the buyer’s input tax credit will not reconcile, because IGST and CGST/SGST sit in separate credit ledgers.

Ladakh charges UTGST, not SGST, on supplies that stay inside the territory. The Jammu and Kashmir Reorganisation Act, 2019 carved it out as a separate Union Territory and gave it GST code 38, with no legislative assembly. Where there is no State legislature there is no SGST to levy; the State-side half is instead UTGST, administered centrally.

This is where most invoice tools get it wrong. They treat every place of supply as a "state" and auto-fill SGST for Ladakh. The rupee figure they print is correct, since UTGST is the same 9% as SGST would have been. The head name and its statutory basis are not. An invoice labelling the Ladakh half as "SGST" cites a law that does not apply to the territory.

Watch the Jammu & Kashmir lookalike. J&K (code 01) is a Union Territory with a legislature, so a J&K supply uses CGST + SGST. Ladakh (code 38) has no legislature, so it uses CGST + UTGST. The two were a single territory until 2019, yet a Ladakh seller billing a J&K buyer now makes an inter-state supply under IGST Act §7: one IGST line, not CGST + UTGST.

Gujarat levies the State half of GST as SGST under the Gujarat Goods and Services Tax Act, 2017, the mirror of the central CGST Act, 2017. Every rupee of SGST collected on an intra-Gujarat sale accrues to the Gujarat exchequer; the matching CGST half goes to the Centre. As a full State with an elected Vidhan Sabha, Gujarat has legislated its own SGST, so the term UTGST never appears on a Gujarat invoice.

The inter-state trigger is the two-digit code on the GSTINs. A Surat textile exporter (code 24) billing a buyer in Maharashtra (code 27) or Karnataka (code 29) crosses the state border, making an inter-state supply under IGST Act §7. The invoice carries one IGST line at the full rate — no CGST or SGST column. The Surat–Mumbai corridor handles some of India's highest textile volumes, so the IGST vs CGST+SGST distinction matters on nearly every bulk shipment.

Gujarat is home to a disproportionate share of chemical, pharmaceutical, and diamond-trade suppliers. These sectors frequently raise B2B invoices to buyers across states — chemicals (HSN 2915/2921), polished diamonds (HSN 7102), and engineering goods all travel out of Gujarat on an inter-state basis. The compliance risk here is the place-of-supply code, not the head name: misclassifying an interstate dispatch as intra-Gujarat means the buyer's IGST input credit will not reconcile against CGST+SGST entries.

Karnataka levies the State half of GST as SGST under the Karnataka Goods and Services Tax Act, 2017, mirroring the CGST Act, 2017. Every rupee of SGST on an intra-Karnataka sale accrues to the Karnataka exchequer. Karnataka has a full Vidhan Sabha, so UTGST is irrelevant to any Karnataka-origin invoice.

Bengaluru is the largest generator of B2B service invoices in India, particularly for software and IT-enabled services (SAC 998314–998319). A Bengaluru software firm (GSTIN code 29) billing a Hyderabad client (code 36) or a Delhi buyer (code 07) makes an inter-state supply under IGST Act §7: one IGST line at the full rate, no CGST or SGST. The error most IT suppliers make is raising CGST+SGST on out-of-state clients because the back-office system defaults to intra-state.

Karnataka also hosts significant manufacturing in electronics (HSN 8542 — integrated circuits), garments (HSN 62), and silk (HSN 5007). For goods dispatched to buyers in Tamil Nadu, Andhra Pradesh, or Maharashtra the same IGST rule applies regardless of the commodity. The two-digit supplier code is always the test: 29 on an invoice means Karnataka rules apply, and any buyer code other than 29 means IGST.

Tamil Nadu levies the State half of GST as SGST under the Tamil Nadu Goods and Services Tax Act, 2017, pairing with the central CGST Act, 2017. SGST on an intra-Tamil Nadu sale accrues to Chennai. Tamil Nadu's Vidhan Sabha means UTGST is inapplicable on any invoice where the supplier code is 33.

Tamil Nadu anchors India's automotive supply chain. Chennai hosts assembly plants and thousands of tier-1 and tier-2 auto-component suppliers raising invoices on HSN 8708 (auto parts) and HSN 8703 (passenger vehicles). A Coimbatore engineering supplier (code 33) billing a buyer in Karnataka (code 29) or Telangana (code 36) makes an inter-state supply under IGST Act §7: one IGST line at the full rate. The frequent audit finding in auto-component B2B is intra-state CGST+SGST billed on pan-India dispatch orders.

Beyond automotive, Tamil Nadu exports significant IT services from Chennai (SAC 998314) and textiles from Tirupur (HSN 6109 — T-shirts). Both sectors cross state borders constantly. For a Tirupur knitwear exporter, the supply chain typically routes goods to Maharashtra or NCR warehouses before onward sale — each leg where the supplier GSTIN and the delivery state code differ triggers IGST, not CGST+SGST.

West Bengal levies the State half of GST as SGST under the West Bengal Goods and Services Tax Act, 2017, paired with the central CGST Act, 2017. West Bengal's Vidhan Sabha makes it a full State — UTGST is irrelevant to any West Bengal-origin invoice. SGST on an intra-state sale accrues to Kolkata.

Kolkata is one of India's oldest trading ports and remains a major hub for jute (HSN 5303), steel intermediates, garments, and IT/IT-enabled services. A Kolkata trading house (code 19) billing a buyer in Jharkhand (code 20) or Bihar (code 10) makes an inter-state supply under IGST Act §7: one IGST line at the full rate. East-India supply chains frequently cross from West Bengal into Jharkhand (for steel inputs) and Bihar (for FMCG distribution), so distinguishing intra- from inter-state is a daily compliance task for Kolkata exporters.

West Bengal also hosts a significant export orientation in leather goods (HSN 4202–4205) from Kolkata's Tangra cluster and ready-made garments from Howrah. When goods are dispatched to buyers in Maharashtra, NCR, or abroad, the place-of-supply leaves West Bengal and IGST applies. The compliance gap most auditors flag here is CGST+SGST raised on goods that actually cross the West Bengal border under consignment stock arrangements.

Rajasthan levies the State half of GST as SGST under the Rajasthan Goods and Services Tax Act, 2017, paired with the central CGST Act, 2017. SGST collected on intra-Rajasthan sales accrues to Jaipur. As a full State with a Vidhan Sabha, Rajasthan uses SGST — UTGST does not apply to any Rajasthan invoice.

Jaipur and Jodhpur are major exporters of gems and jewellery (HSN 7113–7116), textiles (HSN 5208–5209, block-print), and handicrafts (HSN 97). Most of this production is sold to buyers in Maharashtra, NCR, or Gujarat — all inter-state supplies. A Jaipur jewellery exporter (code 08) billing a Mumbai buyer (code 27) raises a single IGST line under IGST Act §7. The high per-invoice value in gems/jewellery makes this a significant tax-head decision: getting CGST+SGST vs IGST wrong misroutes input credit between separate ledgers.

Rajasthan also hosts a growing cement and mining sector. Limestone and cement dispatches (HSN 2521, 2523) from Rajasthan frequently move to Gujarat and Maharashtra for construction projects. Because the freight is normally charged separately, suppliers sometimes incorrectly apply the billing address (Rajasthan) as the place of supply for inter-state construction contracts. Under IGST Act §12, the place of supply for works contracts attached to immovable property is where the property is located — not the supplier's state.

Kerala levies the State half of GST as SGST under the Kerala State Goods and Services Tax Act, 2017, paired with the central CGST Act, 2017. SGST on an intra-Kerala sale accrues to Thiruvananthapuram. Kerala's Vidhan Sabha means UTGST never applies to a Kerala-origin invoice.

Kerala is India's primary source of spices (HSN 0904–0910: pepper, cardamom, ginger), cashews (HSN 0801), and seafood (HSN 0302–0306). Nearly all of these commodities are sold to buyers outside the state — to north-Indian distributors (code 09, 06, 07) or to direct export. Each inter-state domestic sale from Kochi or Kozhikode to a buyer in another state triggers IGST under IGST Act §7. The bulk of GST mismatches in Kerala's agricultural-commodity exports come from agents who bill from a Kerala address but move goods via Tamil Nadu warehouses, creating a place-of-supply dispute.

Kerala also runs a growing IT/ITES sector centred on Technopark (Thiruvananthapuram) and Infopark (Kochi). Software service invoices from these parks to clients in Maharashtra, Karnataka, or abroad (where the place of supply is the client's billing state) must carry IGST. A Kochi IT firm whose back-office defaults all invoices to CGST+SGST will cause input-credit reconciliation failures for every out-of-state client.

Telangana levies the State half of GST as SGST under the Telangana Goods and Services Tax Act, 2017, paired with the central CGST Act, 2017. Telangana was carved from Andhra Pradesh in 2014 and received GST code 36 on reconstitution. Its Vidhan Sabha makes it a full State; UTGST does not apply to Telangana invoices. Note that old, undivided Andhra Pradesh code 28 is now obsolete and must not appear on any current invoice.

Hyderabad is India's pharma capital. Bulk drug and formulation manufacturers (HSN 2936 — vitamins, HSN 3004 — medicaments) based in Genome Valley routinely ship to buyers across India. A Hyderabad pharmaceutical firm (code 36) billing a buyer in Maharashtra (code 27) or West Bengal (code 19) makes an inter-state supply under IGST Act §7. For pharma, IGST is usually at 5% or 12% on medicaments, but the head-name distinction still matters for input-credit ledgers.

Telangana also hosts a significant IT/ITES corridor between Hyderabad HITEC City and Bengaluru. B2B software invoices (SAC 998314) raised by Hyderabad firms for Bengaluru clients (code 29) are inter-state. Fabric from Sircilla textile cluster (HSN 5208) and agricultural commodities from Nalgonda routinely move out of the state. Every outbound supply — goods or services — triggers IGST when the buyer's GSTIN starts with any code other than 36.

Uttar Pradesh levies the State half of GST as SGST under the Uttar Pradesh Goods and Services Tax Act, 2017, paired with the central CGST Act, 2017. UP's Vidhan Sabha is one of India's largest; the State levy is always SGST, and UTGST does not apply to any UP-origin invoice. SGST on intra-UP sales accrues to Lucknow.

The Noida–Greater Noida–Gurugram corridor generates enormous cross-border invoice volumes. A Noida manufacturer or IT firm (GSTIN code 09) billing a buyer in Delhi (code 07) or Haryana (code 06) is raising an inter-state supply under IGST Act §7, even though the Noida–Delhi distance is often less than 25 km. The state border, not geography, determines the tax head. This is the single most common compliance error in the Delhi-NCR corridor: treating cross-border NCR billing as intra-state.

UP also hosts leather goods (Kanpur, HSN 4102–4205), sports goods (Meerut, HSN 9506), and fragrance/agarbatti clusters (Bareilly, HSN 3307). These sectors supply buyers across India. A Kanpur leather exporter (code 09) shipping to a Maharashtra buyer (code 27) must carry IGST on the invoice. Under consignment or CKD supply models, the place of supply is where delivery occurs, not the supplier's registered state.

Delhi is a Union Territory that has its own legislature — the Delhi Vidhan Sabha. Under the Delhi Goods and Services Tax Act, 2017, the State-side levy on intra-Delhi supplies is SGST, not UTGST. This is the critical distinction: the rule is not "UT → UTGST" but "UT without a legislature → UTGST." Delhi's legislature means SGST applies, exactly as it does for a full state like Maharashtra or Karnataka.

The Delhi-NCR trade corridor generates massive inter-state invoice volumes. A Karol Bagh or Nehru Place trader (code 07) billing a buyer in Gurugram or Faridabad (code 06, Haryana) or Noida (code 09, Uttar Pradesh) is making an inter-state supply under IGST Act §7, even though the physical distance is a few kilometres. The confusion here is compounding: many suppliers treat Delhi as a special case and default to UTGST, which is wrong; others treat all NCR trade as intra-state, which is also wrong. The two-digit code is the only test.

Delhi hosts significant wholesale fashion, electronics retail, and services sectors. B2B fabric and garment invoices (HSN 5208/6109) from Chandni Chowk to buyers in Rajasthan, Punjab, or Maharashtra are inter-state. IT and consulting firms (SAC 998300) based in Connaught Place billing clients in other states raise IGST. The concentration of pan-India registered buyers in Delhi means most large-ticket B2B invoices triggered from Delhi are inter-state IGST, with CGST+SGST reserved for sales whose buyer is genuinely within the Delhi UT.

Haryana levies the State half of GST as SGST under the Haryana Goods and Services Tax Act, 2017, paired with the central CGST Act, 2017. Haryana's Vidhan Sabha makes it a full State; UTGST does not appear on any Haryana invoice. SGST on intra-Haryana sales accrues to Chandigarh (the shared capital).

Gurugram and Faridabad are major IGST-generating zones. A Gurugram IT or financial-services firm (code 06) billing a Delhi client (code 07) or a Noida client (code 09) is raising an inter-state invoice under IGST Act §7, despite operating within the same functional NCR zone. IT/ITES companies in Gurugram frequently serve pan-India clients — any buyer GSTIN with a code other than 06 triggers IGST. Faridabad's manufacturing base (auto ancillaries, HSN 8708; bicycle parts, HSN 8714) ships to buyers across north India, making most large-lot dispatches inter-state.

Haryana is also a leading basmati-rice producer and exporter. Agricultural processing units in Karnal and Kaithal (HSN 1006 — rice) sell to Delhi traders, Punjab distributors, or directly to export chains. Domestic B2B rice invoices to Delhi buyers (code 07) carry IGST. The GST rate on basmati rice varies (5% or exempt depending on branded/unbranded status), but the place-of-supply logic is unchanged: different codes mean IGST regardless of the commodity rate.

Andhra Pradesh levies the State half of GST as SGST under the Andhra Pradesh Goods and Services Tax Act, 2017, paired with the central CGST Act, 2017. AP was bifurcated in 2014 — Telangana (code 36) was carved out and AP retained code 37. Code 28 (old undivided AP) is obsolete and will be rejected by any compliant GST validation. The AP Vidhan Sabha makes the State levy SGST; UTGST does not apply.

Visakhapatnam is home to India's largest integrated steel plant (RINL) and a deep-water port handling petroleum, fertilisers (HSN 3102/3105), and steel (HSN 7207). Dispatches from Vizag to buyers in Telangana (code 36), Odisha (code 21), or Maharashtra (code 27) all make inter-state supplies under IGST Act §7. The Vizag–Hyderabad corridor (AP code 37 → Telangana code 36) is one of the most active inter-state GST routes in south India.

AP also anchors south India's aquaculture and food-processing exports. Shrimp (HSN 0306), chillies (HSN 0904), and tobacco (HSN 2401) from the Krishna–Godavari delta move to processing facilities in Gujarat and Maharashtra. A Guntur chilli exporter (code 37) billing a buyer in Rajasthan (code 08) for B2B wholesale carries IGST on the invoice. The agriculture sector's GST rate complexity (exempt vs. 5% depending on processing level) does not change the place-of-supply rule: different codes always mean IGST.

Chandigarh charges UTGST, not SGST, on intra-UT supplies. The UTGST Act, 2017 applies because Chandigarh is a Union Territory administered directly by the Centre, without its own legislature. There is no Chandigarh Vidhan Sabha to levy SGST — so the State-side half is administered centrally under the UTGST framework. The rupee figure (9% at an 18% rate) is identical to what SGST would have been; the head name and the statutory basis are what change.

Chandigarh is a shared capital of Punjab and Haryana, but that administrative linkage does not merge their GST jurisdictions. A Chandigarh service provider (code 04) billing a buyer in Punjab (code 03) or Haryana (code 06) makes an inter-state supply under IGST Act §7: one IGST line at the full rate, no CGST or UTGST. The proximity of the Tri-City (Chandigarh–Mohali–Panchkula) means suppliers in Mohali (Punjab, code 03) and Panchkula (Haryana, code 06) are separated from Chandigarh (code 04) by a state/UT border that triggers IGST on every cross-UT B2B invoice.

Common errors in Chandigarh invoicing: (1) printing "SGST" instead of "UTGST" on intra-UT invoices — the rupee total is correct, the head name is not; (2) treating Mohali or Panchkula as "same zone as Chandigarh" and raising CGST+UTGST when IGST is required. The pakka-bill generator reads the GSTIN's first two digits and switches to CGST+UTGST automatically for code-04 suppliers billing intra-UT buyers, solving both problems without manual intervention.