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What is the meaning of SGST, CGST and IGST when there should be just one kind of tax to be levied?
All the indirect taxes will be replaced by a single tax i.e.GST
It will comprise of:-
Central GST(CGST)
State GST(SGST)
Integrated GST(IGST)The GST to be levied on intra-State supply of goods and / or services
by the Centre- Central GST (CGST)
by the States- State GST (SGST).
Similarly GST to be levied and administered on every inter-state supply of goods and services by Centre- Integrated GST (IGST).2 users thanked author for this post.
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Types of GST
Complete abbreviation of GST is Goods and Service Tax which is Single Tax Imposed by Government on citizens of India on Goods and Services.
Basically GST is classified into 3 types :->
CGST: CGST means Central Goods and Service Tax. The revenue collected under CGST is for Central Government not State ones
SGST: SGST means State Goods and Service Tax and the whole revenue is collected by State Government.
IGST: Integrated Goods and Service Tax. This type of tax is imposed when goods are transferred from one state to another state like Tamil Nadu to Uttar Pradesh. Revenue is distributed between central Govt. and State Govt.
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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
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