Goods and Services Tax is an indirect tax levied on all goods and services in whole nation.There are three types of Goods and Services Tax: CGST (Central Goods and Services Tax), SGST (state goods and services tax) and IGST (integrated goods and services tax). Before GST there were different taxes like VAT, Central excise, Service Tax were being levied by the government o:n consumers which replaced by GST and makes India “one nation with one tax”. There are different GST rates for every products and services levied by the Government.
Details of Goods and Services tax rates on different products: GST RATE SLAB
What is CGST (Central goods and services tax)?
CGST which is also known as central goods and services tax levied by the Central Government on any transaction of goods and services. If there is intrastate supply of goods and service then the seller has to collect both CGST and SGST. The CGST will be collected by the central government and SGST will be collected by the state government.
What is SGST (State goods and services tax)?
SGST refers to state goods and services tax is governed by the SGST act and levied by the state where the transaction of products and services are being purchased or sold. The tax collected from intrastate transaction of goods and services in state will be added to the state government revenue.
What is IGST (Integrated goods and services tax)?
IGST also refers to Integrated goods and services tax is a tax charged on all interstate transactions of goods and services. Integrated goods and services tax is governed by IGST act and applicable to all interstate transaction which means transactions of goods and services within two different states. Under IGST, exports would be zero-rated and tax will be shared between the central state government.
There are many advantages of GST including transparency and less complicated tax structures which aimed at simplifying the tax reforms and make India a business-friendly nation.
Due to many new concepts in goods and services tax, you may have many questions related to GST. For any assistance related to GST: Check out GST Query support
