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Microlesson · 5-min read

Legislative Framework of GST (CGST, SGST, UTGST, IGST Acts and territorial extent)

# The Legislative Framework of GST

GST is not a single statute. It is a family of Acts — one for the Centre on intra-State supplies, one for inter-State supplies, separate State Acts for each State/UT-with-legislature, and one UTGST Act for the remaining UTs.

## The four key statutes

ActExtentLevies
CGST Act, 2017Whole of IndiaCGST on intra-State supplies
SGST Act (each State/UT with legislature)That State / UTSGST on intra-State supplies in that State/UT
UTGST Act, 2017UTs without legislatureUTGST on intra-State supplies in those UTs
IGST Act, 2017Whole of IndiaIGST on inter-State supplies and imports

## What 'India' means under GST

The CGST Act extends to the whole of India. The definition of India has three layers:

1. The territory of India as referred to in Article 1 of the Constitution.

2. Its territorial waters, seabed and subsoil underlying such waters, the continental shelf, exclusive economic zone, or any other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and Other Maritime Zones Act, 1976.

3. The air space above its territory and territorial waters.

## UTs covered by the UTGST Act (UTs without legislature)

1. Andaman and Nicobar Islands

2. Lakshadweep

3. Dadra and Nagar Haveli & Daman and Diu

4. Ladakh

5. Chandigarh

6. Other territory

> Watch out: Delhi, Puducherry and Jammu & Kashmir are UTs/States with legislatures → they have their own SGST Acts, not UTGST.

## SGST Acts

Each State (and each of Delhi, Puducherry, J&K) has enacted its own SGST Act. The Act extends to the whole of that respective State/UT.

## Why this matters

A supply within Tamil Nadu is taxed under the CGST Act + Tamil Nadu GST Act. A supply within Chandigarh is taxed under the CGST Act + UTGST Act. A supply from Tamil Nadu to Karnataka is taxed under the IGST Act. Picking the right Act is the first step in every problem.

Worked example

### Example 1

Identify the Act — intra-State: A Kerala dealer sells within Kerala. Applicable laws: CGST Act, 2017 + Kerala GST Act, 2017.

### Example 2

Identify the Act — UT without legislature: A supplier in Lakshadweep supplies within Lakshadweep. Applicable laws: CGST Act, 2017 + UTGST Act, 2017.

### Example 3

Identify the Act — inter-State: A supplier in Delhi supplies to a customer in Goa. Applicable law: IGST Act, 2017 (Delhi has SGST Act, but irrelevant here as the supply is inter-State).

### Example 4

Extent of 'India': An offshore drilling rig in India's EEZ supplies services. This is within 'India' for GST because EEZ is part of the statutory definition.

⚠️ Common exam mistakes

  • Assuming Delhi & Puducherry come under UTGST — they have their OWN SGST Acts because they have legislatures.
  • Forgetting J&K — post-2019 reorganisation J&K is a UT with legislature, so it has an SGST Act, not UTGST.
  • Saying GST does not apply to high seas or EEZ — the statutory definition of 'India' includes territorial waters, EEZ, continental shelf and air space.
  • Treating IGST Act as something States enact — it is purely a Central enactment.
Bare-Act text Section 2(56) · CGST Act, 2017 · click to expand
(56) 'India' means the territory of India as referred to in article 1 of the Constitution, its territorial waters, seabed and sub-soil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976, and the air space above its territory and territorial waters.
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