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Understanding how GST applies to your business in India

GST rates are based on HSN codes​

In India, the government assigns every product an HSN (Harmonised System of Nomenclature) code, also known globally as the HS code. Each HSN code has a corresponding GST rate—commonly 5%, 12%, 18%, or 28%.

As a merchant, you must correctly assign both the HSN code and the corresponding GST rate when listing products on Fynd Commerce.

Examples:

  • T-shirts

    • HSN code: 61091000
    • Description: Cotton T-shirts, knitted or crocheted
    • GST rate: 5%

  • Shoes

    • HSN code: 64041900
    • Description: Sports footwear with rubber or plastic soles and textile uppers
    • GST rate: 18%

GST type depends on the delivery location​

India follows a destination-based GST model. This means GST is charged based on where the product is delivered—not where your store is located.

  • If the delivery is within the same state or Union Territory (UT): CGST + SGST/UTGST applies.
  • If the delivery is to a different state or UT: IGST applies.
Store locationCustomer delivery locationGST type
Same stateSame stateCGST + SGST
Same Union TerritorySame Union TerritoryCGST + UTGST
Different state/UTDifferent state/UTIGST

GST component breakdown:

  • CGST (Central GST): Collected by the central government.
  • SGST (State GST): Collected by the state government.
  • UTGST (Union Territory GST): Applicable in Union Territories, collected by the UT administration.
  • IGST (Integrated GST): Collected by the central government and distributed to the destination state or UT.

Example scenarios​

Scenario 1: Intra-state sale (CGST + SGST)
  • Store location: Maharashtra
  • Delivery location: Maharashtra
  • Product GST rate: 12%
  • Tax applied: 6% CGST + 6% SGST
Scenario 2: Inter-state sale (IGST)
  • Store location: Delhi
  • Delivery location: Karnataka
  • Product GST rate: 18%
  • Tax applied: 18% IGST
Scenario 3: Sale within a Union Territory (CGST + UTGST)
  • Store location: Chandigarh
  • Delivery location: Chandigarh
  • Product GST rate: 5%
  • Tax applied: 2.5% CGST + 2.5% UTGST
Scenario 4: Sale from a state to a Union Territory (IGST)
  • Store location: Delhi
  • Delivery location: Puducherry
  • Product GST rate: 28%
  • Tax applied: 28% IGST

Union Territories where UTGST applies​

  • Andaman and Nicobar Islands
  • Chandigarh
  • Dadra and Nagar Haveli and Daman and Diu
  • Lakshadweep
  • Ladakh
  • Puducherry