The answer
A supplier registered in Chandigarh (GSTIN starting 04) charges CGST + UTGST — not SGST — on any sale delivered inside Chandigarh. Chandigarh is a Union Territory WITHOUT a legislature, so the State-side levy is UTGST under the UTGST Act, 2017. On a sale to any state or other UT it becomes a single IGST charge. Numerically UTGST equals what SGST would have been; only the head name and its statutory basis differ.
Which tax heads apply, and when?
| Sale type | Place of supply | Tax heads |
|---|---|---|
| Intra-UT | Inside Chandigarh (code 04) | CGST + UTGST |
| Inter-state | Any other state or UT (e.g. Punjab) | IGST |
The UT-side head here is UTGST, because Chandigarh is a union territory (no legislature). See the companion exhibit: CGST+SGST vs IGST — place of supply.
Why Chandigarh works this way
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.
Worked example — ₹10,000 sale at 18%
A Chandigarh supplier sells goods worth ₹10,000 at a 18% GST rate, delivered inside Chandigarh. The 18% splits into two equal UT-and-Centre halves:
- Taxable value
- ₹10,000
- CGST @ 9% (Centre)
- ₹900
- UTGST @ 9% (UT)
- ₹900
Invoice total
₹11,800
On the same sale to a buyer in another state or UT, the ₹1,800 becomes one IGST line of ₹1,800 at 18%, with no CGST or UTGST column. The buyer pays ₹11,800 either way; only the heads change.
How it appears on your pakka bill
On a GST tax invoice (pakka bill) under Rule 46, the tax block is not a single "GST" line. It names each head separately, so for an intra-UT Chandigarh sale the buyer sees two rows:
- CGST: the Centre's half, 9% in the worked example.
- UTGST: the UT half, 9% in the worked example.
The pakka bill generator reads the two-digit code from each GSTIN and picks CGST + UTGST or IGST for you, so the Chandigarh invoice carries the heads the law actually requires.
Raise a Chandigarh GST invoice
Enter your GSTIN and the buyer's, and the tax heads (CGST + UTGST or IGST) compute automatically. Rule 46 fields, validated GSTIN, ₹9 per invoice. No signup.
Open the pakka bill generator →Chandigarh GST tax-head FAQ
- Does a Chandigarh business charge SGST or UTGST?
- UTGST. Chandigarh (GSTIN code 04) is a Union Territory without its own legislature, so the State-side levy is UTGST under the UTGST Act, 2017. SGST never applies to a Chandigarh supply.
- Which GST heads apply when a Chandigarh supplier raises an invoice?
- For a sale delivered inside Chandigarh (buyer place-of-supply code 04), CGST + UTGST, split half and half. For a sale to Punjab, Haryana, or any other state or UT, a single IGST charge at the full rate.
- How is 18% GST split on a ₹10,000 sale inside Chandigarh?
- ₹900 CGST (9%) + ₹900 UTGST (9%) = ₹1,800 tax. The invoice total is ₹11,800. UTGST equals what SGST would have been numerically.
- A Chandigarh supplier bills a Punjab (Mohali) buyer: CGST+UTGST or IGST?
- IGST. Chandigarh (04) and Punjab (03) are different codes, so it is an inter-state supply even within the Tri-City zone: one IGST line, no CGST or UTGST. The UT/state border, not the commuting distance, determines the tax head.