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Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →GST is shared through two different routes, depending on where a supply takes place. For a taxable supply within one State, the tax has a Central GST (CGST) component and a State GST (SGST) component. For an inter-State supply, the Union collects Integrated GST (IGST), which is later apportioned and transferred under law. There is no single fixed percentage that describes how every GST rupee is divided between the Union and every State.
Which GST mechanism applies?
The supply’s place and character determine the tax heads used. A supply within one State is generally subject to CGST and SGST; a supply between States is subject to IGST. Imports are treated as inter-State supplies for this purpose.
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| Supply route | Tax head | Initial collection and allocation |
|---|---|---|
| Within one State | CGST plus SGST | The Union and the State levy their respective components on the same supply. The Central Board of Indirect Taxes and Customs (CBIC) says SGST revenue is for the State Government. |
| Between States | IGST | The Union collects IGST; it is then apportioned and transferred under the statutory framework. |
| Import | IGST treatment as an inter-State supply | Article 269A deems imports to be inter-State supplies for its purposes. |
The applicable rates depend on the goods or services and the relevant classification and notifications; the route does not imply one universal GST rate.
How an intra-State supply is shared
For a taxable supply within a State, CGST and SGST are separate components of the dual GST structure. This is not one government collecting the entire GST amount and then routinely handing half to the other. CBIC’s official Know About GST overview states: “The revenue collected under SGST is for State Government.” The central component is CGST.
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How IGST collected on an inter-State sale is allocated
Article 269A(1) of the Constitution provides that GST on inter-State trade or commerce is levied and collected by the Government of India, then apportioned between the Union and the States in the manner Parliament provides by law on the recommendations of the GST Council. The official text of the 101st Constitution Amendment Act reproduces this rule.
Collection is only the first step. The Integrated Goods and Services Tax Act provides for apportionment and transfers to central, State, or Union Territory tax accounts. IGST credits can also be used across relevant tax accounts. As a result, the amount initially collected as IGST should not be treated as a final amount retained by the collecting government, nor explained as an automatic equal split of the gross payment between the Union and the destination State.
How imports fit into the system
Article 269A deems imports to be inter-State supplies for the purpose of that article, bringing them into the IGST framework. The GST Council’s explainer supports this import treatment. This point concerns GST classification and apportionment; it is not a complete account of customs duties or other import charges.
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Why there is no universal Union–State percentage
“Shared” can mean either the separate CGST and SGST components on an intra-State supply or the later apportionment of IGST on an inter-State supply. These are distinct mechanisms. The Constitution also has a general framework for distributing certain Union taxes, but that does not turn every GST receipt into a single fixed-percentage split. A particular GST amount’s treatment depends on its tax head and the applicable statutory accounting and settlement rules.
A historical GST Council agenda note discussed unsettled IGST balances at the end of a financial year in connection with Article 270. It also distinguished amounts already apportioned or cross-utilized. That meeting material is not a current procedural guide, so it should not be used to infer present settlement dates, formulas, or timelines. The agenda note is useful only as historical context.
Quick Recap
What to remember when reading GST collection figures
- CGST and SGST are the two components for an intra-State supply; SGST revenue is for the State Government.
- IGST is collected by the Union on inter-State supplies, then apportioned and transferred under law.
- Imports are treated as inter-State supplies for Article 269A’s purposes.
- A headline collection figure does not, by itself, show the final amount retained by each government.
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