The answer
A supplier registered in Telangana (GSTIN starting 36) charges CGST + SGST on any sale delivered inside Telangana. On a sale to another state or UT it becomes a single IGST charge. Telangana is a State with its own legislature under the Telangana 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 Telangana (code 36) | CGST + SGST |
| Inter-state | Any other state or UT (e.g. Karnataka) | IGST |
The state-side head here is SGST, because Telangana is a state (has legislature). See the companion exhibit: CGST+SGST vs IGST — place of supply.
Why Telangana works this way
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.
Worked example — ₹10,000 sale at 18%
A Telangana supplier sells goods worth ₹10,000 at a 18% GST rate, delivered inside Telangana. 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 Telangana 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 Telangana invoice carries the heads the law actually requires.
Raise a Telangana 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 →Telangana GST tax-head FAQ
- Which GST heads apply when a Telangana business raises an invoice?
- For a sale delivered inside Telangana (buyer place-of-supply code 36), CGST + SGST, split half and half. For a sale to any other state or UT, a single IGST charge at the full rate.
- Does Telangana charge SGST or UTGST?
- SGST. Telangana is a full State with its own legislature and GST code 36, so the State levy is SGST under the Telangana GST Act, 2017. UTGST never applies. Also note: the old undivided Andhra Pradesh code 28 is obsolete and no longer used.
- How is 18% GST split on a ₹10,000 sale inside Telangana?
- ₹900 CGST (9%) + ₹900 SGST (9%) = ₹1,800 tax. The invoice total is ₹11,800.
- A Hyderabad pharma firm bills a Karnataka buyer: CGST+SGST or IGST?
- IGST. Telangana (36) and Karnataka (29) are different state codes, so it is an inter-state supply: one IGST line at the applicable rate (5%, 12%, or 18% for pharma), no CGST or SGST.