Types Of GST - SGST, CGST, IGST and UGST

Types Of GST - SGST, CGST, IGST and UGST

There are four types of GST

  • Ø SGST (State Goods and Service Tax)
  • Ø CGST (Central Goods and Service Tax)
  • Ø IGST (Integrated Goods and Service Tax)
  • Ø UTGST (United Territory Goods and Service Tax)

 

SGST (State Goods and Service Tax)

SGST or State Goods and Service Tax is a tax under GST regime that is applicable on intrastate (within the state) sale of goods or services. In case of an Intrastate transaction both CGST and SGST are levied equally. It is governed by the SGST Act. The revenue earned on SGST is solely claimed by the respective state government. E.g. If a manufacturer or trader from Gujrat sells goods to a customer in Gujrat (i.e. within the state) for Rs. 4,000 and the GST charged is 18 %. In such case the GST will be divided equally as -  9% CGST and 9% SGST.The total amount to be charged by the trader or manufacturer will be Rs. 4,720.

Out of the revenue earned from GST under the head of SGST, i.e. Rs.360, will go to the Gujrat state government in the form of SGST.

CGST (Central Goods and Service Tax)

CGST or Central Goods and Service Tax is also a tax under GST regime that is applicable on intrastate (within the state) sale of goods or services. In case of an Intrastate transaction both CGST and SGST are levied equally. It is governed by the CGST Act. The revenue earned on CGST is solely claimed by the Central Government. E.g. If a manufacturer or trader from Maharashtra sells goods to a customer in Maharashtra (i.e. within the state) for Rs. 4,000 and the GST charged is 18 %. In such case the GST will be divided equally as -  9% CGST and 9% SGST. The total amount to be charged by the trader or manufacturer will be Rs. 4,720.

Out of the revenue earned from GST under the head of CGST, i.e. Rs.360, will go to the Central Government in the form of CGST.

IGST (Integrated Goods and Service Tax)

IGST or Integrated Goods and Service Tax is also a tax under GST regime that is applicable on interstate (between two states) sale of goods or services or in case of export of goods without LUT. In case of an Interstate transaction only IGST is levied, which is governed by the IGST Act. The revenue earned on IGST is further shared by the Central Government with the respective states. E.g. If a manufacturer or trader from Maharashtra sells goods to a customer in West Bengal (i.e out of the state) for Rs. 4,000 and the GST charged is 18%. The total amount to be charged by the trader or manufacturer will be Rs. 4,720.

UTGST (Union Territory Goods and Service Tax)

The Union Territory Goods and Services Tax or UTGST is corresponding to State Goods and Services Tax (SGST) which is levied on the supply of goods and/or services in the Union Territories (UTs) of India. The UTGST is governed by the UTGST Act. The UTGST is applicable on the supply of goods and/or services in Chandigarh, Lakshadweep, Daman and Diu, Dadra and Nagar Haveli, Andaman and Nicobar Islands. The revenue earned from UTGST is collected by the Union Territory government. The UTGST is a replacement for the SGST in Union Territories. Thus, the UTGST will be levied in addition to the CGST in Union Territories. E.g. If a manufacturer or trader from Lakshadweep sells goods to a customer in Lakshadweep (i.e. within the union territory) for Rs. 4,000 and the GST charged is 18 %. In such case the GST will be divided equally as -  9% CGST and 9% UTGST. The total amount to be charged by the trader or manufacturer will be Rs. 4,720.




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