TAXES UNDER GST

Central GST

Central GST is the component of GST that will be levied by the central government on all items, both goods and services. It only applies to intra-state trade. A dealer can use input tax credit of CGST against CGST or IGST.

State GST

State GST is the component of GST that will be levied by the state government on all items, both goods and services. It only applies to intra-state trade. A dealer can use input tax credit of SGST against SGST or IGST.

Integrated GST

Integrated GST is the component of GST that will be levied by the central government in case of inter-state trade. It is applicable on all items, both goods and services. A dealer can use input tax credit of IGST against SGST, CGST or IGST.

Union Territory GST

The purpose of UTGST bill is to apply a collection of tax on every Intra UT supply of goods and service in the union territories in absence of legislature and has similar properties as that of SGST. So all in all, the SGST cannot fulfill the needed provision here and for the same UTGST has taken its place.

Therefore if inter-state sales (i.e., sale from one state to another state) are made then the seller will charge IGST in place of CGST + SGST.

GST Implimentation

• For Supply of goods and/or services within a state (Intra-State): CGST + SGST.
• For Supply of goods and/or services within Union Territories (Intra-UT): CGST + UTGST.
• For Supply of goods and/or services across States and/or Union Territories (Inter-State/ Inter-UT): IGST.