The answer
A supplier registered in Karnataka (GSTIN starting 29) charges CGST + SGST on any sale delivered inside Karnataka. On a sale to another state or UT the same total becomes a single IGST charge. Karnataka is a State with its own legislature under the Karnataka Goods and Services Tax Act, 2017, so the State levy is SGST. UTGST never applies.
Which tax heads apply, and when?
| Sale type | Place of supply | Tax heads |
|---|---|---|
| Intra-state | Inside Karnataka (code 29) | CGST + SGST |
| Inter-state | Any other state or UT (e.g. Telangana) | IGST |
The state-side head here is SGST, because Karnataka is a state (has legislature). See the companion exhibit: CGST+SGST vs IGST — place of supply.
Why Karnataka works this way
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.
Worked example — ₹10,000 sale at 18%
A Karnataka supplier sells goods worth ₹10,000 at a 18% GST rate, delivered inside Karnataka. The 18% splits into two equal state-and-Centre halves:
- Taxable value
- ₹10,000
- CGST @ 9% (Centre)
- ₹900
- SGST @ 9% (State)
- ₹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 SGST 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-state Karnataka sale the buyer sees two rows:
- CGST: the Centre's half, 9% in the worked example.
- SGST: the State half, 9% in the worked example.
The pakka bill generator reads the two-digit code from each GSTIN and picks CGST + SGST or IGST for you, so the Karnataka invoice carries the heads the law actually requires.
Raise a Karnataka GST invoice
Enter your GSTIN and the buyer's, and the tax heads (CGST + SGST or IGST) compute automatically. Rule 46 fields, validated GSTIN, ₹9 per invoice. No signup.
Open the pakka bill generator →Karnataka GST tax-head FAQ
- Which GST heads apply when a Karnataka business raises an invoice?
- For a sale delivered inside Karnataka (buyer place-of-supply code 29), CGST + SGST, split half and half. For a sale to any other state or UT, a single IGST charge at the full rate.
- Does Karnataka charge SGST or UTGST?
- SGST. Karnataka is a full State with its own elected legislature, so the State levy is SGST under the Karnataka GST Act, 2017. UTGST never applies.
- How is 18% GST split on a ₹10,000 sale inside Karnataka?
- ₹900 CGST (9%) + ₹900 SGST (9%) = ₹1,800 tax. The invoice total is ₹11,800.
- A Bengaluru IT firm bills a Hyderabad client: CGST+SGST or IGST?
- IGST. Karnataka (29) and Telangana (36) are different state codes, so it is an inter-state supply: one 18% IGST line, no CGST or SGST. This applies whether the invoice is for software, services, or goods.