CGST vs SGST vs IGST - Which Tax Goes on Your Invoice? (Simple Guide)

If you have ever created a GST invoice and paused at CGST, SGST, and IGST, you are not alone. Many freelancers know their service attracts GST, but they are unsure which tax line should appear on the invoice.

Here is the simple version:

• CGST means Central GST. It goes to the central government.
• SGST means State GST. It goes to the state government.
• IGST means Integrated GST. It applies to interstate supplies and is collected by the centre.

For most freelancers, the decision comes down to one question: is the client in the same state as the place from which you are supplying the service, or in a different state?

The golden rule

Same state client: use CGST plus SGST. The GST rate is split equally.

Different state client: use IGST. The full GST rate appears as one tax line.

For example, if the GST rate is 18%, a same-state invoice usually shows 9% CGST and 9% SGST. A different-state invoice usually shows 18% IGST.

Example 1: Designer in Mumbai, client in Mumbai

Let us say a designer in Mumbai creates a branding package for a Mumbai client. The taxable value is Rs 50,000 and the GST rate is 18%.

Because the supplier and client are in the same state, the invoice uses CGST plus SGST:

• Taxable value: Rs 50,000
• CGST at 9%: Rs 4,500
• SGST at 9%: Rs 4,500
• Total GST: Rs 9,000
• Invoice total: Rs 59,000

The client sees the GST split clearly. The total tax is still 18%; it is simply divided into two equal parts.

Example 2: Developer in Delhi, client in Bangalore

Now imagine a software developer in Delhi billing a company in Bangalore for a monthly retainer. The taxable value is Rs 80,000 and the GST rate is 18%.

Because this is an interstate supply in a typical domestic B2B context, the invoice uses IGST:

• Taxable value: Rs 80,000
• IGST at 18%: Rs 14,400
• Invoice total: Rs 94,400

There is no separate CGST or SGST line in this case.

Common GST rates for freelance services

Many common professional services used by freelancers are generally billed at 18% GST. This often includes IT services, creative services, consulting, digital marketing, design, software development, and training or coaching services.

However, do not guess your rate from a blog post. GST classification depends on the exact service, the relevant SAC code, exemptions if any, and current notifications. If your service is unusual or regulated, ask your CA to confirm the applicable rate.

The safest workflow is: confirm your service rate once, save the SAC and rate in your invoice notes or templates, then reuse it consistently.

What if the client is unregistered?

If your client does not have a GSTIN, you can still issue an invoice if you are registered and making a taxable supply. Add the client's name and address. If the client is unregistered, leave the GSTIN field blank rather than inventing one or putting "NA" in a way that creates confusion.

For unregistered clients, the same tax split logic still matters. Same-state supplies use CGST plus SGST, and interstate supplies use IGST. The absence of a GSTIN does not automatically remove GST from your invoice if you are registered and GST applies.

For higher-value unregistered supplies, invoice rules may require more complete recipient and place details. This is another reason to collect the client's correct billing address before creating the invoice.

What about clients outside India?

Exports of services can have different GST treatment and documentation requirements. Some export invoices may mention supply meant for export with payment of IGST, or under bond or LUT without payment of IGST, depending on the setup. Do not treat an overseas client like a normal interstate Indian client without checking the export rules that apply to you.

If you regularly bill foreign clients, create a separate export invoice process with your tax advisor. That saves confusion later when filing returns.

How InvoiceModo helps you stop guessing

InvoiceModo keeps the GST choice visible while creating the invoice. When GST mode is enabled, you can choose whether the invoice should show CGST plus SGST or IGST. Enter your service value and rate, and the invoice preview calculates the tax lines and total.

This is useful because most mistakes happen during arithmetic or while editing a reused document. A copied spreadsheet might still have last month's IGST line when today's client needs CGST and SGST. InvoiceModo makes the tax mode part of the invoice flow, so you review it before downloading the PDF.

Quick checklist before sending

Before you send a GST invoice, ask these questions:

• Am I registered under GST and allowed to charge GST?
• Is the client in the same state or a different state?
• Have I selected CGST plus SGST or IGST correctly?
• Is the GST rate correct for this service?
• Have I added the client's GSTIN if they are registered?
• Does the invoice show the place of supply?
• Does the total match the taxable value plus tax?

If all answers look right, the invoice is much less likely to bounce back from the client's accounts team.

Conclusion

CGST, SGST, and IGST sound technical, but the everyday decision is simple. Same state means CGST plus SGST. Different state means IGST. The total GST rate does not change just because the split changes.

Stop editing old invoices and hoping the tax lines are right. Use InvoiceModo to create a GST-ready invoice, choose the correct tax type, and download a clean PDF.