Entity · EOR · Payroll · Compliance

IRPR
GST|Glossary entry|2 min read

CGST and SGST

Central GST/State GST/CGST/SGST

Dual GST levied on intra-state supplies of goods and services, with CGST collected by the Centre and SGST by the state government in equal proportions.

Regulator

Central Board of Indirect Taxes and Customs (CBIC); State Commercial Tax departments

Deadline

Event-triggered

Penalty

Procedural only

Legal basis

Central Goods and Services Tax Act, 2017; respective State GST Acts

§ 01
Definition

What is CGST and SGST?

Dual GST levied on intra-state supplies of goods and services, with CGST collected by the Centre and SGST by the state government in equal proportions.

Applies to
  • +Local procurement of goods and services within the same state
  • +Office rent, utilities, and local vendor payments by a GCC entity
  • +Standard combined rate is 18 percent for most IT services (9 percent CGST plus 9 percent SGST)
§ 02
Citation

Statutory basis

Central Goods and Services Tax Act, 2017; respective State GST Acts

Enforced by

Central Board of Indirect Taxes and Customs (CBIC); State Commercial Tax departments

Citations are editorially curated. Always verify current applicability with qualified Indian counsel before acting on a specific matter.

§ 03
Why it matters

The stake

Material

Compliance exposure for CGST and SGST. Skipping or mishandling this compliance carries direct financial and operational consequences.

Why CGST and SGST matters for your GCC

CGST and SGST is a GST requirement for foreign-owned Indian entities and GCCs. Although CGST and SGST is not bound by a single hard deadline, sustained compliance is monitored by Central Board of Indirect Taxes and Customs (CBIC); State Commercial Tax departments, and missed obligations compound across audit and assessment cycles. Most foreign parents discover CGST and SGST issues only when a downstream transaction surfaces the prior gap, by which point rectification costs and operational delays have grown materially. Proactive handling avoids these cascading consequences.

§ 04
Pitfalls

The 4 ways CGST and SGST goes wrong

Real scenarios from real GCC compliance audits. Each one preventable.

01

Trap 01

Mismatching figures between GSTR-1, GSTR-3B, and the books, triggering reconciliation notices

02

Trap 02

Claiming input tax credit on invoices not appearing in GSTR-2B

03

Trap 03

Missing the monthly deadline and incurring late fees that exceed the actual tax payable

04

Trap 04

Misclassifying inter-state versus intra-state supplies (IGST vs CGST and SGST)

§ 05
IRPR Network handles this

Done for you

Accounting and Tax

IRPR Network handles CGST and SGST as part of our Accounting and Tax service, with timely filings, supporting-document validation, citation tracking, and a zero-penalty compliance calendar.

Our workflow

  1. 01Identify the trigger event in your GCC operations
  2. 02Prepare and validate the CGST and SGST filing or compliance step
  3. 03Submit to the regulator and obtain acknowledgement
  4. 04Track in your compliance calendar for ongoing or recurring obligations
§ 07
Questions

Asked about CGST and SGST

3 specific questions that GCC operators ask most often, answered with citations to the relevant regulations.

Need help with CGST and SGST?

IRPR Network manages CGST and SGST as part of Accounting and Tax, with a zero-penalty guarantee.

Explore the service
Q01

What is CGST and SGST and who does it apply to?

+

Dual GST levied on intra-state supplies of goods and services, with CGST collected by the Centre and SGST by the state government in equal proportions. For foreign-owned GCCs, CGST and SGST applies to local procurement of goods and services within the same state. IRPR Network handles CGST and SGST as part of our Accounting and Tax service.

Q02

What law governs CGST and SGST?

+

CGST and SGST is governed by Central Goods and Services Tax Act, 2017; respective State GST Acts. The compliance is enforced by Central Board of Indirect Taxes and Customs (CBIC); State Commercial Tax departments.

Q03

Who handles CGST and SGST for foreign-owned GCCs in India?

+

IRPR Network handles CGST and SGST end-to-end as part of our Accounting and Tax service. Our team prepares filings, coordinates with regulators, validates supporting documents, and tracks all related deadlines on a defined compliance calendar.

Continue

Handle CGST and SGST the right way, the first time.

Book a 30-minute consultation. We will map your CGST and SGST obligations alongside every other India compliance for your GCC, on one calendar, one retainer.

Book a consultation