VATupdate

Types of GST in India- What is CGST, SGST and IGST?

There are four types of GST as explained below, these are:

SGST – GST imposed by specific State governments on the intra-State trade and services or trade within the state is called SGST(State-GST). Here the revenues are earned by the State govt. due to SGST as the transaction occurred within the state. For example – Suppose goods manufactured and sold within Haryana state then SGST will be collected by the Haryana state.

UGST – In case of Union territories such as Chandigarh, instead of State govt. the GST is collected by the Central administration and is referred to as UGST(Union-GST).

CGST – For an intra-State transaction of goods and services, CGST(Central-GST) is levied by the Central government. It is collected along with the SGST or UGST, and the revenues collected are distributed between the State and the Central govt. For example – If the goods or services are provided within State Haryana, then along with SGST or UGST, CGST will also be collected.IGST – Integrated GST is collected on goods and services transactions between different states. It is also applied to imports or exports of goods and services. Here the SGST portion of the tax collected is given to the state, which is the consumer of the said goods or services. The IGST earned is then divided between the state and the central government.

Source: lendingkart.com

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