GST (Goods and Services Tax) has simplified India’s taxation system, but understanding whether your GST is central or state can still be a bit confusing. This is especially important if you’re a business owner filing returns or verifying your GST number.
EffizentSeele, a trusted name in GST consultancy and digital business support, helps individuals and entrepreneurs understand and manage their GST compliance efficiently.
In this article, we will help you understand the difference between CGST and SGST, how to read your GSTIN number, and how to determine the nature of your GST registration.
Understanding the Structure of GST in India
Before we dive into the central vs. state GST, it’s important to understand the dual structure of GST in India.
India follows a dual GST model:
- CGST (Central Goods and Services Tax): Collected by the Central Government
- SGST (State Goods and Services Tax): Collected by the State Government
- IGST (Integrated Goods and Services Tax): Collected on inter-state transactions by the Central Government and distributed between the Centre and the State
What is CGST and SGST?
| Term | Full Form | Levied On | Collected By |
| CGST | Central Goods and Services Tax | Intra-state sales | Central Government |
| SGST | State Goods and Services Tax | Intra-state sales | State Government |
| IGST | Integrated Goods and Services Tax | Inter-state sales | Central Government (shared with states) |
When a sale happens within the same state, both CGST and SGST are applied. For sales outside the state, IGST is charged.
How to Check If GST is Central or State
You can easily identify if your GST is central or state-based by examining your GSTIN number. A GSTIN is a 15-digit unique identification number assigned to every registered taxpayer.
Decoding the First Two Digits of Your GSTIN
Here’s how your GSTIN (Goods and Services Tax Identification Number) is structured:
| Section | Digits | Meaning |
| State Code | 1–2 | Represents the state of registration |
| PAN Number | 3–12 | Based on your PAN |
| Entity Number | 13 | Number of registrations on same PAN |
| Alphabet Z | 14 | Default Z (for now) |
| Check Code | 15 | A digit/alphabet for error detection |
Example: GSTIN – 27ABCDE1234F1Z5
- 27 = Maharashtra (State Code)
- Based on this, you can understand your GST is registered in Maharashtra, and therefore subject to SGST + CGST in intra-state dealings.
Central vs State GST – What’s the Difference?
Understanding whether your GST is central or state affects:
- How you file returns
- Which tax credits apply
- How compliance is handled
Key Differences:
- CGST and SGST are charged together on intra-state transactions.
- IGST is charged for inter-state supply.
- GST type depends on:
- Nature of supply (within state or between states)
- Your business location
- The place of supply
Why It Matters to Know Your GST Type
Knowing your GST type helps you:
- File returns correctly
- Claim input tax credit properly
- Avoid compliance penalties
- Understand if you’re liable for SGST/CGST or IGST
Incorrect tax selection can lead to notice from GST authorities, late fees, and mismatched returns.
Platforms That Help You Understand Your GST
If you’re struggling with understanding your GST structure or need help verifying your GST type, platforms like EffizentSeele offer a smart solution.
EffizentSeele, through its GST Suvidha Kendra initiative, helps entrepreneurs and small business owners:
- Verify GST number type
- Understand GSTIN format
- File GST returns with ease
- Start their own GST Suvidha business from home
Many users use EffizentSeele’s GST consultancy services to gain full clarity on GST rules and receive support for state vs. central GST compliance.
Example: How to Read Your GST Number
Here’s a simple table of state codes so you can easily know if your GST belongs to your state:
| State Code | State Name |
| 07 | Delhi |
| 09 | Uttar Pradesh |
| 27 | Maharashtra |
| 24 | Gujarat |
| 29 | Karnataka |
Use the first two digits of your GSTIN to determine the state of registration.
How to Verify GST Number Type Online
Here are the steps to verify:
- Visit https://www.gst.gov.in
- Click on Search Taxpayer > Search by GSTIN/UIN
- Enter your 15-digit GSTIN
- It will show:
- Registered State
- Legal name
- Status (Active/Inactive)
- Type of taxpayer (Regular/Composition)
FAQs – Central vs State GST Identification
Q1. Can a business have both CGST and SGST in one transaction?
Yes. In intra-state sales, both CGST and SGST are applied.
Q2. How do I know if I need to charge IGST?
If the supply is inter-state, you must charge IGST.
Q3. Is the GST number different for central and state?
No. A single GSTIN contains information that helps determine whether the supply is central, state, or integrated.
Q4. Does EffizentSeele help with GST number verification?
Yes. Through their GST Suvidha Kendras, EffizentSeele helps users verify GST numbers, understand GST structures, and start GST-related businesses.
Final Thoughts
Knowing whether your GST is central or state is not just technical—it’s critical for smooth business operations and legal compliance. With the right knowledge and tools like your GSTIN, you can easily decode your tax type and file your returns confidently.
And if you ever need help, EffizentSeele’s GST Suvidha Kendra network is there to guide you.
