Find the IGST for a sale that goes between two states.
For inter-state supply, the full GST amount is charged as a single IGST rather than split into CGST and SGST.
IGST: Base amount × rate ÷ 100
IGST, or Integrated GST, is the single tax charged when goods or services move from one state to another, and on imports. Instead of two halves, the full GST rate is charged as one amount. This calculator takes the base price and rate and shows the IGST and the invoice total.
Any business that sells across state lines needs it. An e-commerce seller in Jaipur shipping to customers in Maharashtra, or a software firm in Bengaluru billing a client in Delhi, raises IGST invoices. The calculator answers: what is the IGST on this inter-state sale, and what will the buyer pay in total?
1. Confirm the supply is inter-state: the supplier's location and the place of supply are in different states or union territories.
2. Write down the base price B and the GST rate R.
3. IGST = B × R ÷ 100.
4. Invoice total = B + IGST.
5. Do not split the amount into CGST and SGST.
6. Record the place of supply on the invoice, since it decides which state eventually receives the revenue.
When a seller in one state supplies a buyer in another, the tax should end up with the consuming state. But the seller is registered in the producing state and cannot easily pay tax to every state it sells into. IGST solves this. The centre collects the full tax at the full rate, and the state share is later passed to the destination state through a settlement between governments. The buyer's total is the same as for an intra-state sale at the same rate.
Input tax credit of IGST can be used to pay IGST, CGST or SGST liability, in the order the rules set. That makes IGST credit more flexible than CGST or SGST credit. Because of this, businesses that buy inter-state and sell within their state can use the IGST they paid on purchases against their intra-state output tax, which keeps the credit chain unbroken across state borders.
Imported goods attract IGST at the point of import, along with customs duty, and importers can usually claim it as credit. Exports are treated as zero-rated supplies. An exporter can either export without paying IGST under the prescribed undertaking and claim a refund of input credit, or pay IGST and claim a refund of that tax. In both cases the aim is that Indian GST does not travel abroad in the price of exported goods.
Rakesh runs an online furniture business in Jaipur and ships a dining set worth ₹1,50,000 before tax to a customer in Pune. The furniture attracts 18% GST.
Answer: IGST (Integrated GST) ₹27,000; Total with IGST ₹1,77,000
Charging CGST and SGST because the goods were dispatched from the seller's own state, even though the buyer is elsewhere.
Believing an inter-state sale costs the buyer more tax than a local one.
Ignoring the place of supply rules for services, which can differ from the buyer's address.
Using CGST or SGST credit before exhausting IGST credit, contrary to the set-off order.
Invoicing customers in other states.
Estimating tax on imports for costing.
Checking online marketplace invoices for inter-state purchases.
Planning credit use across IGST, CGST and SGST ledgers.
Why is IGST not split like CGST/SGST?
Because the sale crosses a state border, there is no single 'home state' to split the tax with. The central government collects the full IGST, and later shares part of it with the states separately.