GST rates, CGST/SGST and IGST explained
How Hisab Central decides between CGST+SGST and IGST, where the rate comes from, and how many HSN digits to print.
One tax, split two ways
GST on a sale is either CGST + SGST (shared between the Centre and your state) or IGST (collected by the Centre on inter-state supply). The total rate is the same; only the split changes.
How Hisab Central decides
- It takes the State POS Code of your dispatch location and the customer's State from the ledger.
- Same state → CGST + SGST, half each.
- Different state (or export, SEZ) → IGST at the full rate.
Keep the state and GSTIN correct on every ledger and dispatch address; that is all the software needs.
Where the rate comes from
The rate lives on the stock item (HSN / SAC Code, Taxability, IGST Rate), not on the invoice. Each rate is then mapped to its ledgers in Configuration → Rate-Wise GST Ledger Mapping, so CGST 9%, SGST 9% and IGST 18% each post to their own ledger. Set this up once; every invoice follows it.
Current rate slabs
From 22 September 2025 (GST 2.0) the main slabs are 5% and 18%, with 40% for luxury and sin goods. Many essentials are 0% or exempt. Special rates remain for gold, silver and jewellery (3%) and for diamonds and precious stones (0.25% and 1.5%). Use the HSN Finder to confirm the rate for any item.
HSN digits on invoices
| Annual turnover | Digits required |
|---|---|
| Up to ₹5 crore | 4 digits (B2B invoices; optional on B2C) |
| Above ₹5 crore | 6 digits on all invoices |
| Exports and imports | 8 digits |