LaunchMyOffice
HomeBlog › GST on interstate e-commerce sales
GST basics

GST on interstate e-commerce sales

Sell to a customer in another state and IGST applies. Here's how interstate GST works and why it doesn't always mean a new registration.

By the Launch My Office team · Updated 2026-06-22 · 6 min read

Online sellers ship across India daily, so understanding interstate GST is essential. The key distinction is between IGST (interstate) and CGST + SGST (within a state).

Place of supply decides the tax

Selling interstate doesn't always need registration there

You can sell to every state from one GSTIN by charging IGST — no need to register in the buyer's state. Registration is triggered by storing stock in a state, not by shipping to it. Confirm your footprint with the Multi-state GST Checker.

Worked example

A Maharashtra-registered seller ships to Karnataka: charge IGST at the product's rate. Ship within Maharashtra: charge CGST + SGST. The total rate is the same; only the split differs.

ScenarioTax charged
Maharashtra → MaharashtraCGST + SGST
Maharashtra → KarnatakaIGST
Stock stored in KarnatakaRegister GSTIN in Karnataka
Marketplaces handle much of the IGST/CGST split automatically based on buyer location, but you remain responsible for correct returns and reconciliation.

When storage changes the picture

Once you move stock into another state (e.g. FBA), you need a GSTIN there with the warehouse as an APOB. Until then, IGST from your home GSTIN covers interstate sales.

Need this done for you?

Our in-house CA & CS team set up your virtual office, VPOB and GST end to end — from ₹15,290/yr.

💬 Talk to our team View plans →

Frequently asked questions

Do I charge IGST or CGST/SGST?

IGST for interstate supplies (different states), CGST+SGST for intra-state supplies. The total rate is identical.

Do interstate sales require registration in the buyer's state?

No. You can serve all states from one GSTIN using IGST. Only storing stock in a state triggers registration there.

Who decides place of supply?

For goods, it's generally where delivery to the customer ends.

Talk to an expert

Get a free callback

Leave your details and our in-house CA & CS team will call you back — usually within a few business hours. No spam, no obligation.

  • ✓ Free consultation on VPOB, APOB & GST
  • ✓ Transparent pricing from ₹15,290/yr
  • ✓ Same-day document pack on most plans

Prefer chat? Message us on WhatsApp →

Launch My Office
Ask me anything · or talk to our team