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Tax

GST Calculator — Chandigarh (Chandigarh UT) FY 2025-26

For businesses and consumers in Chandigarh, Chandigarh: intra-state GST splits equally between CGST and Chandigarh UT (each at half the applicable rate), while inter-state supplies attract IGST at the full rate. At 18% GST on a Rs 1L invoice within Chandigarh: CGST = Rs 9,000 + Chandigarh UT = Rs 9,000 = total Rs 18,000 GST. GST registration is mandatory above Rs 20L/year for services and Rs 40L/year for goods in Chandigarh.

Verified Formula|Source: Income Tax Department, Government of India|Last verified: April 2026Methodology

GST Details

Calculate GST on top of the base amount

Inter-State Supply (IGST)

CGST + SGST applies for intra-state transactions

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Net Price

₹1,00,000

GST Amount

₹18,000

Total Price

₹1,18,000

GST Breakdown

Base Amount₹1,00,000
CGST @ 9%₹9,000
SGST @ 9%₹9,000
Total GST₹18,000
Net Price (Excl. GST)₹1,00,000
Total Price (Incl. GST)₹1,18,000

Price Composition

Common GST Rates — Quick Reference

Item / CategoryGST Rate
Essential food items (rice, wheat, milk)0%
Packaged food, butter, ghee5%
Processed food, mobile phones12%
Electronics, shampoo, AC restaurants18%
Luxury cars, aerated drinks, tobacco28%
Gold, silver, platinum3%
Rough diamonds0.25%

Input Tax Credit (ITC)

Businesses registered under GST can claim Input Tax Credit on GST paid on purchases, effectively reducing the GST liability on their sales. Ensure timely GSTR-2B reconciliation to maximize your ITC claims.

GST in Chandigarh: CGST, Chandigarh UT, and IGST — FY 2025-26 Guide

Goods and Services Tax (GST) in Chandigarh, Chandigarh operates under a dual structure administered jointly by the Government of India and Chandigarh state government. Whether you are a business owner in the IT Park Chandigarh / Mohali area, a consumer buying services inChandigarh, or a freelancer invoicing clients across India, the applicable GST component — CGST + Chandigarh UT or IGST — depends on whether the supply is intra-state or inter-state. Chandigarh is a Union Territory with zero professional tax and India's highest per-capita income among all UTs at approximately Rs 3.5 lakh/year. Punjab & Haryana's NRI diaspora (Canada, UK, Australia) channels an estimated $4–6 billion annually into Tricity (Chandigarh-Mohali-Panchkula) real estate — making foreign remittance and NRI tax calculations uniquely critical here.

CGST vs Chandigarh UT vs IGST: How It Works in Chandigarh

The fundamental rule:

  • Intra-state supply (supplier and recipient both in Chandigarh): GST = CGST (central government) + Chandigarh UT (Chandigarh government), each at half the total GST rate. On a Rs 1,00,000 invoice at 18%: CGST Rs 9,000 (9%) + Chandigarh UT Rs 9,000 (9%).
  • Inter-state supply (supplier in Chandigarh, recipient in another state, or vice versa): GST = IGST at the full rate. Same Rs 1,00,000 invoice at 18%: IGST = Rs 18,000 (18%), all to central government (then apportioned to destination state).
  • Import of services: IGST under Reverse Charge Mechanism (RCM) — the recipient in Chandigarh pays GST to the government. Common for Chandigarh's businesses using foreign software, cloud services, or overseas consultants.

GST Rates Applicable to Chandigarh's Economy

The four main GST rate slabs apply uniformly across Chandigarh:

  • 5% GST: Essential goods and basic services. For Chandigarh: non-AC restaurant meals (no ITC for restaurant), economy hotel stays (room rate below Rs 7,500/night), packaged foods with certain HSN codes, economy air travel (excluding fuel surcharge), electric vehicles, and textile goods below Rs 1,000.
  • 12% GST: Mid-range goods and services. Relevant for Chandigarh: hotel stays Rs 7,500–12,000/night, processed food, computers and laptops (with exceptions), smartphones above Rs 20,000 category, business class air travel, construction of affordable housing.
  • 18% GST: Most services and manufactured goods. This is the dominant GST rate for Chandigarh's Government sector — IT services, consulting, financial services, insurance (excl. life insurance), telecom, steel, chemicals, paints, AC restaurants, hotel stays above Rs 12,000/night.
  • 28% GST: Luxury and demerit goods. Chandigarh: automobiles (plus cess), luxury hotels, tobacco products, gambling and racing activities, luxury cement. Plus additional cess on many 28% items.

Government Sector GST in Chandigarh

Chandigarh's Government sector has specific GST implications that businesses and professionals here must navigate:

  • Professional and consulting services: 18% GST under SAC 9983/9985. Freelancers and consultants in Chandigarh billing above Rs 20L/year must register for GST and charge 18% CGST + Chandigarh UT on domestic invoices.
  • Commercial property rent: If annual commercial rent in Chandigarhexceeds Rs 20L and the landlord is a GST-registered entity, 18% GST applies. At estimated commercial rents of Rs 50,000/month in Chandigarh, annual commercial rent is Rs 6,00,000. Annual commercial rent is below Rs 20L — GST on rent may not apply if the landlord is under threshold.

Input Tax Credit (ITC) for Chandigarh Businesses

GST-registered businesses in Chandigarh can claim Input Tax Credit on GST paid for goods and services used in their business. ITC rules in Chandigarh:

  • CGST paid can offset CGST or IGST liability; Chandigarh UT paid can offset Chandigarh UT or IGST; IGST can offset any GST liability (IGST first, then CGST, then SGST).
  • Conditions for ITC: Valid tax invoice, goods/services received, GST filed by supplier (reflected in GSTR-2B), and payment made to supplier within 180 days.
  • ITC blocked items: Motor vehicles (for personal use), employee-related food and beverages, club memberships, health insurance for employees (unless mandatory under law), works contract for immovable property.
  • ITC reconciliation: GSTR-2B (auto-populated) vs your purchase register must be reconciled monthly. Mismatch can lead to ITC disallowance and penalty — a critical compliance task for Chandigarh's MSMEs and large businesses alike.

GST Registration Threshold and Compliance for Chandigarh

GST registration is mandatory in Chandigarh when aggregate turnover exceeds:

  • Rs 40 lakh/year for goods suppliers (Rs 20L for special category states — not applicable to Chandigarh).
  • Rs 20 lakh/year for service providers.
  • Any threshold for inter-state supplies, e-commerce operators, or businesses with taxable supplies despite low turnover.

Chandigarh freelancers and consultants in the Government sector who provide services to clients in other states must register for GST irrespective of turnover — even a single inter-state invoice triggers mandatory registration. Return filing: GSTR-1 (monthly/quarterly for outward supplies) + GSTR-3B (monthly summary + tax payment) + GSTR-9 (annual reconciliation). Businesses in Chandigarh with turnover above Rs 5 crore must file GSTR-1 monthly. Below Rs 5 crore, quarterly GSTR-1 filing is available under the QRMP scheme.

Composition Scheme: For Small Chandigarh Businesses

Small Chandigarh businesses with annual turnover below Rs 1.5 crore (goods) or Rs 50 lakh (services) can opt for the Composition Scheme — pay a fixed percentage of turnover as GST (1% for goods, 6% for services including restaurants) without ITC. Composition dealers cannot raise a tax invoice or collect GST from customers, and cannot supply inter-state. This suits small retailers, restaurants, and service providers inChandigarh's Sector 17 and Sector 22 local markets who do primarily local business.

Disclaimer

GST rates and rules are based on notifications effective as of FY 2025-26. Specific HSN/SAC codes may attract different rates. Special economic zone (SEZ) supplies are zero-rated. E-invoicing is mandatory above certain turnover thresholds. Consult a GST practitioner or Chartered Accountant in Chandigarh for business-specific compliance guidance.

Frequently Asked Questions — GST in Chandigarh

What is the difference between Chandigarh UT and SGST? Is Chandigarh UT the same as SGST?

Yes — Chandigarh UT is the State GST (SGST) for Chandigarh. The term "SGST" in the GST framework is referred to by each state's specific name: Maharashtra's SGST is "Maharashtra SGST", Karnataka's is "Karnataka SGST", etc. For Chandigarh (Chandigarh), all intra-state transactions split GST into CGST (Central GST) and Chandigarh UT (ChandigarhSGST), each at half the applicable rate. On an 18% intra-state invoice of Rs 1,00,000: CGST = Rs 9,000 andChandigarh UT = Rs 9,000.

Do I need to charge GST on my Chandigarh freelance income?

You need to register for GST if your annual freelance income exceeds Rs 20 lakh (services threshold for Chandigarh) or if you supply services to clients in other states (inter-state supply triggers mandatory registration at any turnover). Once registered, you charge 18% GST (CGST 9% + Chandigarh UT9%) on domestic invoices. If you export services to overseas clients, it's zero-rated with an LUT — no GST charged, but you can claim ITC refunds on inputs. Chandigarh's thriving Government freelance economy means many consultants hit the Rs 20L threshold quickly — plan your GST registration well in advance to avoid retrospective compliance issues.

What GST applies on restaurant bills in Chandigarh?

GST on restaurants in Chandigarh depends on the type. Non-AC restaurants (standalone, not in hotels with room tariff above Rs 7,500): 5% GST (CGST 2.5% + Chandigarh UT 2.5%), no Input Tax Credit. AC restaurants or those in 5-star hotels: 18% GST (CGST 9% +Chandigarh UT 9%), no ITC. On a Rs 5,000 dinner: 5% restaurant = Rs 250 GST; 18% restaurant = Rs 900 GST. Restaurant GST cannot be claimed as ITC by the customer — it is a final consumer cost. Zomato/Swiggy delivery orders from restaurants also attract 5% GST (collected by the platform, not the restaurant).

How does GST work for Chandigarh businesses buying from another state?

When a Chandigarh (Chandigarh) business buys goods or services from a supplier in another state, IGST (Integrated GST) applies at the full rate. For example, buying software services from a Bengaluru vendor (if you are in Chandigarh, Chandigarh): 18% IGST applies. You pay IGST on the invoice, which is deposited with the central government and then apportioned to the consuming state. As a Chandigarh registered business, you can claim the IGST paid as Input Tax Credit. ITC utilisation order: first against IGST liability, then CGST, then Chandigarh UT. This seamless cross-state ITC chain is one of GST's major improvements over the pre-GST era when inter-state purchases suffered from cascading VAT and CST costs.

Chandigarh's GST landscape has a unique structural feature: as a Union Territory, Chandigarh has CGST + UTGST (Union Territory GST) instead of CGST + SGST. The UTGST rate is identical to SGST at 9% for standard-rated goods/services, but is administered by the Central government (not a state legislature) — making Chandigarh's GST administration entirely federal with no state political interference. This matters for businesses in Chandigarh because the GST officer structure, audit jurisdiction, and appeal hierarchy differ from Punjab and Haryana (which have their own state GST departments and appellate authorities). The Punjab and Haryana High Court, being located in Chandigarh, creates a significant legal services market where advocate services fall under RCM for business clients. Chandigarh's IT park in Rajiv Gandhi Chandigarh Technology Park (RGCTP) houses HCL, Dell, TCS, Quark, and smaller IT firms generating 18% GST on domestic IT services and zero-rated on exports. Tricity's (Chandigarh-Mohali-Panchkula) retail and hospitality economy: 5-star hotels like Taj Chandigarh and The JW Marriott exceed Rs 7,500/night → 18% GST. Chandigarh's institutional character (PGIMER, PGI, CHD, PGIMS) creates government procurement TDS under Section 51. Punjab-region wheat and paddy: exempt from GST. Chandigarh Sector 17-22's wholesale market for electronics, textiles: 12-18% GST.

Key Insight — Chandigarh

Chandigarh's defining GST insight is the CGST-UTGST administration structure and its practical implications for business compliance — where Chandigarh businesses deal exclusively with Central GST officers rather than a state GST department. This creates both advantages and challenges: Advantages: Central GST officials have uniform training and procedures — no state-specific practices or political interference in audit selection. The CGST portal and CPC (Central Processing Cell) are technologically superior to some state systems. Challenges: The Chandigarh UT GST officer jurisdiction means appeals from Chandigarh assessees go to the Appellate Authority for UT (AAUT), not the state GST Appellate Authority. The AAUT may have a smaller bench and potentially longer pendency. For Chandigarh businesses with operations in both Punjab/Haryana AND Chandigarh: separate GSTINs are mandatory — Punjab GSTIN (state SGST), Haryana GSTIN (state HGST), Chandigarh GSTIN (UTGST). Each GSTIN files with its own jurisdiction: Punjab GST officer, Haryana GST officer, and Chandigarh Central GST officer. The invoice must show the CORRECT GSTIN for the location of supply. Chandigarh IT companies that send employees to Punjab client offices: the supply location is Punjab → IGST applies (inter-UT/state supply), not CGST+UTGST. This place of supply determination for service businesses in Chandigarh's UT boundary is particularly important. The Tricity dynamic: when a Chandigarh company invoices a Mohali (Punjab) client — it's IGST. When it invoices a Chandigarh Sector 17 client — CGST+UTGST. The distinction must be perfectly captured in invoicing.

Chandigarh's Financial Context and GST Calculator

Chandigarh UT: CGST 9% + UTGST 9% = 18% standard rate (no state GST — Union Territory GST applies). GST administration: Central GST (CGST) officers have jurisdiction — no separate state GST department. Appeals: GST Appellate Authority under central jurisdiction. PGIMER as government entity: Section 51 GST TDS deductor. Chandigarh IT park: export of IT services → zero-rated, LUT. Chandigarh's tricity hotel market: room >Rs 7,500/night: 18% GST. Convention centres (HICC, Hotel Mount View banquet): 18% GST on events. Punjab Agricultural University extension office in Chandigarh: government entity, Section 51 TDS. Defence cantonments in Chandigarh (Chandimandir): government procurement TDS. Agricultural produce (wheat, paddy, vegetables from Mohali and Panchkula farms): exempt from GST. Chandigarh's pharmaceutical manufacturing (Mohali Pharma City): 5-12% pharma GST. Tricity automotive dealerships: 28% + cess on passenger vehicles, 18% on two-wheelers >350cc. Restaurant GST: 5% (no ITC). Commercial rent: 18% GST. Residential rent: exempt. E-way bill: intra-UT movements (Chandigarh to Chandigarh): minimal since Chandigarh is small. Chandigarh to Mohali (Punjab): inter-state → Rs 50K threshold. Chandigarh to Panchkula (Haryana): inter-state → Rs 50K.

PGIMER and Tricity Healthcare GST — Medical Devices, Hospital Procurement, and TDS

PGIMER (Post Graduate Institute of Medical Education and Research) is one of India's premier medical institutions and a major government procurement entity in Chandigarh. PGIMER procures: surgical instruments (12% GST), diagnostic equipment (12-18% GST), medicines (5% GST), hospital furniture (18% GST), IT systems (18% GST), construction services (12-18% GST works contract). GST TDS under Section 51: PGIMER is a government entity → deducts 2% GST TDS on all invoices above Rs 2.5L from registered vendors. For a Chandigarh medical device supplier: Invoice Rs 50L + 12% GST = Rs 56L. PGIMER TDS: 2% × Rs 50L = Rs 1L. Payment received: Rs 55L. Vendor claims Rs 1L TDS credit. Since PGIMER is under Central government jurisdiction (AIIMS and Central Institute category): PGIMER files GSTR-7 with Central GST officer. The TDS is deposited by PGIMER and reflected in vendor's GSTR-2B typically by 15th of following month. Healthcare services GST: PGIMER's clinical services to patients → EXEMPT (health care services by clinical establishment). But: Blood bank services (beyond exempt minimum), diagnostic lab services to non-patients (commercial), pharmacy attached to hospital selling OTC medicines → potentially taxable. Chandigarh private hospitals (Max Healthcare, Fortis Mohali — technically Mohali/Punjab jurisdiction): similar exempt clinical services. Dental clinics, physiotherapy: part of health care exemption if provided by qualified professional. Cosmetic procedures (Botox, hair transplant): debated — some rulings hold cosmetic is not health care → 18% GST applicable.

Chandigarh IT Park — CGST+UTGST Invoicing and Punjab Client Cross-Border Compliance

Rajiv Gandhi Chandigarh Technology Park (RGCTP) and the expanding IT ecosystem in Zirakpur/Mohali (technically Punjab) creates a tricity GST navigation challenge for IT companies. HCL Technologies Chandigarh campus: registered GSTIN under Chandigarh UT (CGST+UTGST). Client in Mumbai: IGST on invoice. Client in Mohali (Punjab): IGST (inter-state, Chandigarh UT to Punjab). Client in Panchkula (Haryana): IGST (inter-state, Chandigarh UT to Haryana). Client in Chandigarh: CGST + UTGST. The practical invoicing challenge: when Chandigarh IT company invoices a Pan-India client (like Tata Steel with offices across states), must raise separate IGST invoices correctly identifying the supply as inter-state. Incorrect CGST+UTGST invoice raised to a Punjab client → Punjab client cannot claim CGST+UTGST credit in their Punjab GSTIN (needs IGST) → major ITC dispute. For IT exports (US, UK, EU, Singapore clients): zero-rated, LUT filed, IGST not applicable. Place of supply for export of services: outside India → zero-rated regardless of supplier's Chandigarh or Punjab location. Employee deputation: Chandigarh IT company seconds employees to work at Punjab client's premises → is this supply of manpower services (18% GST)? Or does the employee deputation create a permanent establishment issue? Detailed analysis: if the Chandigarh company provides employees under a service contract (continues to supervise and control employees) → service supply at 18% GST. If employees are effectively transferred to client's control: deemed employment → no GST, but PE risk. Most IT secondment arrangements are structured as controlled service supply → 18% IGST to Punjab client.

More Questions — GST Calculator in Chandigarh

I'm a Chandigarh Sector 17 hardware shop (Rs 25L annual turnover). I supply to Mohali (Punjab) businesses and also sell locally. How many GSTINs do I need and how do I invoice?

Chandigarh hardware shop GST registration: You need ONLY ONE GSTIN — under Chandigarh UT (CGST + UTGST). You do NOT need separate Punjab GSTIN for supplying to Mohali businesses. The supply from Chandigarh to Mohali is an INTER-STATE supply (UT to State) → IGST applies automatically on your existing Chandigarh GSTIN. Invoicing guidance: Local Chandigarh client (Sector 22 builder): Invoice with CGST 9% + UTGST 9% = 18% total. Mohali (Punjab) registered business: Invoice with IGST 18%. You include the buyer's Punjab GSTIN → system identifies as inter-state → your invoice correctly charges IGST. The buyer (Mohali construction company): claims IGST credit from your invoice → no problem for them claiming inter-state ITC. Panchkula (Haryana) buyer: IGST 18%. E-way bill: For Chandigarh-to-Mohali hardware supply > Rs 50,000 value: inter-state e-way bill mandatory. For within Chandigarh delivery >Rs 50,000 (since Chandigarh is small UT, intra-UT threshold would apply — but practically most deliveries are low value). Composition scheme: If you consider composition scheme (≤ Rs 1.5Cr turnover, 1% for traders): Composition scheme CANNOT supply to inter-state buyers (Mohali). If you supply inter-state under composition: you lose composition eligibility. Since your Mohali supplies are inter-state, do NOT use composition scheme if Mohali represents significant business. Stay on regular scheme — claim ITC on purchases (tools, hardware inputs at 12-18% GST) → offset against output GST. Net tax is only on your margin. GSTR-1 + GSTR-3B monthly or quarterly (QRMP if ≤ Rs 5Cr).

I'm opening a restaurant in Chandigarh Sector 26 (AC, seating 80 people, estimated Rs 60L annual revenue). What GST applies, and is there any benefit to using composition scheme?

Chandigarh restaurant GST analysis: Regular scheme: GST rate: 5% on all food and beverages (since October 2019 rationalization — all restaurants, AC or non-AC, are at 5%). No ITC on inputs. Monthly GST: Rs 60L annual / 12 = Rs 5L monthly × 5% = Rs 25,000/month GST payable. Annual GST outflow: Rs 3L. Composition scheme for restaurant: Restaurants with turnover ≤ Rs 1.5Cr can opt for composition at 5% on turnover (same rate as regular!). For restaurants, composition and regular scheme BOTH produce 5% GST on turnover → identical outflow at Rs 3L annually. So why choose composition? Compliance simplicity: Composition: file one quarterly return (GSTR-4) instead of monthly GSTR-1 + GSTR-3B. Annual statement: CMP-08 + GSTR-4 annual. Lower compliance burden — beneficial for owner-operated restaurants without GST accountant. Restrictions of composition: Cannot claim ITC (same restriction as regular 5% without ITC restaurant). Cannot supply inter-state (no catering orders to Delhi or Punjab clients). Cannot supply composite party orders with delivery if classified as inter-state. For a Chandigarh Sector 26 purely local restaurant: composition is beneficial for compliance simplicity since there's no ITC to lose (5% scheme already no ITC) and no inter-state catering planned. If you plan corporate catering orders to Mohali/Panchkula businesses: regular scheme (inter-state allowed). Recommendation: Start with composition scheme for simplicity → switch to regular if corporate catering or inter-state orders begin. Annual turnover Rs 60L easily within Rs 1.5Cr composition limit. UTGST payment: under composition, pay combined CGST+UTGST as per composite rate on quarterly basis.

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