Free IGST Calculator
Use this specialized calculator to instantly compute Integrated Goods and Services Tax (IGST) for transactions between two different states in India.
Calculation Result
Tax Breakdown
Net Amount
₹0
GST (18%)
+₹0
CGST (9%)
₹0
SGST (9%)
₹0
Tax Insight
Standard service rate. ITC is fully available on business-to-business (B2B) purchases.
Total Amount
Rupees Only
Informational tool only. All calculations follow Section 170 rounding rules of the CGST Act. Cross-verify with a tax professional before filing.
Understanding Integrated GST (IGST)
Integrated Goods and Services Tax (IGST) is a tax levied under the GST regime on the inter-state supply of goods and services (i.e., transactions occurring between two different states or union territories), as well as on imports and exports.
Unlike CGST and SGST, the entire tax revenue from IGST is collected by the Central Government and subsequently apportioned appropriately to the destination state. This follows the Destination-Based Consumption Tax principle of the Indian GST framework.
When is IGST Applicable?
IGST is applicable in the following scenarios:
- Inter-State Supply: When the location of the supplier and the place of supply are in two different states.
- Import of Goods/Services: Any goods or services imported into India are treated as inter-state supplies and attract IGST.
- Export of Goods/Services: While exports are generally zero-rated, they fall under the IGST category for compliance and refund tracking.
- Supply to/from SEZ: Supplies made to or by a Special Economic Zone (SEZ) developer or unit are treated as inter-state supplies.
IGST Calculation Formula
Total Tax = (Net Amount × GST Rate) / 100
Example: If you sell a product worth ₹10,000 from Maharashtra to Karnataka with an 18% tax rate, the IGST will be ₹1,800. The buyer will pay a total of ₹11,800.
Frequently Asked Questions (FAQs)
1. Who collects IGST—State or Centre?
IGST is collected by the Central Government of India. However, the revenue is later shared between the Centre and the Destination State according to the recommendations of the GST Council.
2. Can I claim Input Tax Credit (ITC) on IGST?
Yes, Input Tax Credit on IGST can be used to set off the liability of IGST, CGST, and SGST (in that specific order). This makes IGST highly flexible for businesses with inter-state operations.
3. Is IGST applicable on SEZ transactions?
Yes, any supply to an SEZ unit or developer is treated as an inter-state supply, regardless of whether the supplier is in the same state. These are typically zero-rated supplies.
4. How is IGST different from CGST + SGST?
CGST and SGST are applied on intra-state sales (within the same state), where the revenue is split between the Centre and the State immediately. IGST is a single tax for across-border sales to simplify the tax flow.