Effizentseele Pvt Ltd has been working consistently to simplify GST services in India through its GST Suvidha Kendras. One of the most common doubts that business owners and taxpayers have is: “How do I know if my GST is central or state?”
Understanding this difference is crucial because it directly impacts how you file your returns, manage compliance, and operate your business efficiently. In this blog, we will explain the basics of GST, the difference between Central GST and State GST, and provide simple ways to determine whether your GST falls under Central or State jurisdiction.
What is GST and Why Classification Matters?
The Goods and Services Tax (GST) is a unified tax structure introduced in India to remove the complexity of multiple indirect taxes. It is divided into Central GST (CGST), State GST (SGST), and Integrated GST (IGST) depending on the type of transaction.
But many people still wonder: “How do I know if my GST is central or state?” The classification matters because:
It determines which authority (central or state) collects your tax.
It affects your GST Return Filing process.
Wrong classification may lead to penalties or compliance issues.
That’s why businesses often rely on professional support or platforms like GST Suvidha Kendra for accurate assistance.
Central GST vs State GST – Meaning
To understand the concept clearly, let’s break down central GST vs state GST:
Central GST (CGST): This tax is collected by the central government. It applies to transactions happening within the same state. For example, if a seller in Delhi sells goods to a buyer in Delhi, part of the tax goes to the central government as CGST.
State GST (SGST): This tax is collected by the state government. In the same example above (Delhi to Delhi sale), the other part of the tax goes to the Delhi state government as SGST.
Together, CGST and SGST apply to intra-state transactions, while IGST applies to inter-state transactions (between two different states).
Thus, when comparing state GST vs central GST, the key difference is who collects the revenue—state authority or central authority.
How to Identify if GST is Central or State?
Now the main question arises: How do I check if my GST is central or state? Here are the simplest methods:
Check Your GST Number (GSTIN):
Every GST number is 15 digits.
The first two digits represent the state code.
If your business is registered in one state and you sell within the same state, both CGST and SGST apply.
If your supply goes outside the state, IGST applies.
Check the Invoice:
On your invoice, you will find whether CGST + SGST is charged (intra-state) or IGST (inter-state).
This directly tells you whether the tax is going to the central and state governments or only the central government.
Check on the GST Portal:
By logging in to the official GST portal, you can verify the nature of your GST and where it is applicable.
So, the easiest way to identify if GST is central or state is through the GSTIN and the invoice details.
Example with GST Number Breakdown
Let’s take an example to make this clear:
Suppose your GSTIN is 07ABCDE1234F1Z5.
07 → This indicates the state code for Delhi.
If you are supplying goods within Delhi, your invoice will show CGST + SGST.
If you supply goods from Delhi to Maharashtra, your invoice will show IGST.
This way, by just reading your GSTIN and the type of supply, you can easily understand if your GST is central or state.
So whenever you are in doubt about gst is central or state, simply check your GSTIN and your invoices.
Why It Matters for Businesses
Knowing whether your GST is central or state is not just about tax knowledge—it directly impacts your business operations.
During GST Registration, you need to provide accurate state details.
While doing GST Return Filing, the system automatically categorizes your tax liability based on the central or state.
For compliance, having clarity saves you from penalties and delays.
That’s why many small and medium businesses take the help of GST Suvidha Kendra, where all GST-related services are provided under one roof, from registration to return filing.
Frequently Asked Questions
Q1. What is the difference between central GST vs state GST?
Ans: Central GST (CGST) is collected by the central government, while State GST (SGST) is collected by the state government for the same intra-state transaction.
Q2. How do I know if my GST is central or state?
Ans: You can check it through your GSTIN, invoice, or GST portal. If both CGST and SGST are applied, it is intra-state. If IGST is applied, it is inter-state.
Q3. Do I need the GST Suvidha Kendra to understand this difference?
Ans: It is not mandatory, but using GST Suvidha Kendra makes the process easier as professionals handle registration, filing, and compliance for you.
Conclusion
To summarize, the answer to “How do I know if my GST is central or state?” lies in your GSTIN, invoice details, and the type of transaction. If it is intra-state, then both CGST and SGST apply; if it is inter-state, then IGST applies.
For business owners, this knowledge is essential to avoid mistakes in GST return filing. If you still face confusion, platforms like Effizentseele Pvt Ltd, through their GST Suvidha Kendras, can help you with GST Registration, GST Return Filing, and compliance solutions.
Understanding state GST vs central GST ensures that your business stays compliant, penalty-free, and stress-free.
