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.
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
- If supplier and delivery are in the same state: CGST + SGST.
- If they're in different states: IGST.
- Place of supply for goods is usually where delivery ends.
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.
| Scenario | Tax charged |
|---|---|
| Maharashtra → Maharashtra | CGST + SGST |
| Maharashtra → Karnataka | IGST |
| Stock stored in Karnataka | Register GSTIN in Karnataka |
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.
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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.
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