GST worked examples: intra-State supplies (CGST with SGST or UTGST)

An intra-State supply — supplier and place of supply in the same State or Union territory — bears two taxes of equal rate: central tax (CGST) and State tax (SGST), or Union territory tax (UTGST) in a Union territory without a legislature. The worked examples below show how the classification, place of supply and tax split are decided. Figures are illustrations; rates are those in force on 04.10.2026.

A.1 — Goods sold within a State

Facts. A Mumbai manufacturer sells hot-rolled steel plates (HSN 7208) for Rs. 10,00,000 to a fabricator in Pune. Steel plates are taxed at 18%.

1. Place of supply of goods that move is where the movement ends — Pune (section 10(1)(a) IGST Act).
2. Supplier in Maharashtra, place of supply in Maharashtra: an intra-State supply (section 8(1) IGST Act).
3. Tax: CGST 9% (Rs. 90,000) + Maharashtra SGST 9% (Rs. 90,000).
4. The invoice shows each tax separately (Rule 46); the supplier reports it as a business-to-business supply in GSTR-1.

Result. Total tax Rs. 1,80,000. The fabricator takes credit of both taxes, subject to section 16.

A.2 — Services within a State with a legislature

Facts. A Delhi consultancy charges a Delhi-registered client Rs. 5,00,000 for management consulting (18%).

1. For services to a registered person, the general rule places the supply at the recipient's location — Delhi (section 12(2)(a) IGST Act).
2. Delhi is a Union territory with a legislature, so it levies State tax under its own GST Act, not UTGST.
3. Tax: CGST 9% (Rs. 45,000) + Delhi SGST 9% (Rs. 45,000).

Result. Intra-State supply taxed at CGST plus Delhi SGST.

A.3 — A supply in a Union territory without a legislature

Facts. A Chandigarh retailer sells goods taxed at 18% for Rs. 50,000 to a walk-in customer.

1. Over-the-counter sale: place of supply is the shop, in Chandigarh.
2. Chandigarh has no legislature, so the second tax is UTGST under the UTGST Act, 2017.
3. Tax: CGST 9% (Rs. 4,500) + UTGST 9% (Rs. 4,500).

Result. CGST plus UTGST; the supplier reports it as a consumer supply in GSTR-1.

A.4 — Bill-to-ship-to within one State

Facts. On the instructions of B (Mumbai), supplier A (Mumbai) delivers goods worth Rs. 2,00,000 directly to C's warehouse in Pune. A invoices B; B invoices C. All three are in Maharashtra.

1. A to B: where goods are delivered to a third person on the instructions of the buyer, the buyer is deemed to have received them, and the place of supply is B's principal place of business — Mumbai (section 10(1)(b) IGST Act). Intra-State: CGST + SGST.
2. B to C: a separate supply with its own invoice; place of supply Pune. Intra-State: CGST + SGST.

Result. Two intra-State supplies. The e-way bill for the movement records A as consignor, C as consignee and B as the bill-to party.

A.5 — A composite supply

Facts. An event manager organises a wedding in Delhi for an unregistered individual under a single contract for Rs. 5,00,000 covering venue, catering and decoration.

1. Goods and services naturally bundled and supplied together with one principal supply are a composite supply, taxed at the rate of the principal supply (section 8(a) CGST Act).
2. Here the principal supply is event management, taxed at 18%.
3. For an unregistered recipient, the place of supply of event-related services is where the event is held — Delhi (section 12(7) IGST Act).

Result. One supply at 18%: CGST 9% + Delhi SGST 9% = Rs. 90,000. Whether a bundle is composite depends on the contract and trade practice; separately priced, independent services are separate supplies.

A.6 — Construction of a residential apartment

Facts. A Mumbai promoter sells an under-construction residential apartment (not affordable housing) for Rs. 1 crore, of which one-third is the deemed value of land.

1. Sale of an under-construction apartment is a supply of construction service (Schedule II, para 5(b)); the land value is deducted at one-third of the total.
2. Residential apartments other than affordable housing in a residential real estate project are taxed at CGST 3.75% + SGST 3.75% on the value after the land deduction, without input tax credit (Notification 11/2017-Central Tax (Rate), as amended by Notification 3/2019) — an effective 5% of the total price (1% for affordable housing).
3. Tax on Rs. 66,66,667 at 7.5%: CGST Rs. 2,50,000 + SGST Rs. 2,50,000 = Rs. 5,00,000.
4. Place of supply: location of the immovable property (section 12(3) IGST Act).

Result. Rs. 5,00,000, i.e. 5% of the Rs. 1 crore price, without credit. Promoters must also meet the 80% registered-procurement condition, failing which reverse charge applies (see the reverse charge guide).

A.7 — Restaurant food sold through a delivery platform

Facts. A Delhi restaurant sells a Rs. 1,000 meal directly to a customer, and another Rs. 1,000 meal to a Delhi customer through a food delivery app.

1. Restaurant service is taxed at 5% without credit.
2. Direct sale: the restaurant charges CGST 2.5% + SGST 2.5% = Rs. 50.
3. Through the app: from 01.01.2022 restaurant services supplied through an e-commerce operator are taxed in the operator's hands (section 9(5) CGST Act; Notification 17/2021-Central Tax (Rate)). The app pays Rs. 50; the restaurant does not charge tax on that order.

Result. Same tax, different taxpayer. The restaurant reports platform sales in GSTR-1 as supplies on which the operator pays tax.

A.8 — Stock transfer between two registrations in one State

Facts. A company has separate GST registrations for its Mumbai and Pune units (for example, a SEZ unit and a domestic unit, or business verticals), and transfers goods worth Rs. 5,00,000 between them.

1. Each registration is a distinct person (section 25(4)), and supplies between distinct persons are supplies even without consideration (Schedule I, para 2).
2. Value is the open market value; where the recipient is eligible for full input tax credit, the invoice value is deemed to be that value (Rule 28, second proviso).
3. Both in Maharashtra: CGST + SGST at the rate for the goods.

Result. Taxable, though usually revenue-neutral because the receiving unit takes credit.