Types of GST in India - What is SGST, CGST, IGST & UGST?
Types of GST in India - What is SGST, CGST, IGST & UGST?
May 10, 2023
7 Minutes
Demystifying GST: Your Comprehensive Guide to Different Types and More
Introduction:
The Goods and Service Tax (GST) Act, a groundbreaking tax reform, came into effect in India on July 1st, 2017. Replacing a myriad of indirect taxes, GST stands as a unified, comprehensive tax law for the entire nation. This guide unravels the complexities surrounding GST, exploring its types, objectives, and the entities liable for payment.
Understanding GST:
Goods and Services Tax is a value-added tax applied to the supply of goods and services for domestic consumption. Unlike its predecessors, GST is an all-encompassing, single indirect tax, impacting the final price of a product. Levied by the Central Government, intrastate transactions see the distribution of this tax under CGST and SGST.
Objectives of GST:
GST aims to eliminate multiple tax systems, enhance business compliance, reduce prices, bolster overall national revenue, and elevate efficiency and productivity.
Replaced Taxes with GST:
GST has streamlined the tax landscape by replacing various levies such as VAT, Octroi, Entertainment Tax, Service Tax, and more.
Different Types of GST Tax:
Based on the nature of transactions, GST manifests in three types - SGST, CGST, and IGST. SGST is applicable to intrastate transactions within a state, CGST applies to intrastate transactions levied by the Central Government, and IGST is for inter-state transactions.
Components of GST:
SGST: State Goods and Services Tax, levied on intrastate transactions, benefits the state government.
CGST: Central Goods and Services Tax, also for intrastate transactions, shares revenue equally between the central and state governments.
IGST: Integrated Goods and Services Tax, for inter-state transactions, distributes revenue between the state and central governments.
Application of Different Types of GST:
An illustrative example demonstrates the application of SGST, CGST, and IGST in various scenarios, shedding light on the division of GST and the benefiting authorities.
Difference Between the Types of GST:
Differences among SGST, UGST, CGST, and IGST, including collecting authority, priority of tax credit use, applicable transactions, and benefiting authority, are succinctly outlined for clarity.
Who is Liable to Pay GST?
Several categories of individuals, including those registered under GST making taxable supplies, those under the reverse charge mechanism, persons required to deduct tax at source, and e-commerce operators, are liable to pay GST.
Goods Exempted from GST Payment:
Certain goods and services enjoy exemptions under GST, spanning categories like food, raw materials, instruments/tools, and miscellaneous items.
In conclusion:
This comprehensive guide serves as your roadmap to navigate the labyrinth of Goods and Service Tax in India. As you explore the intricacies of GST, understanding its types, objectives, and applications empowers you to navigate the dynamic landscape of taxation with confidence.
Demystifying GST: Your Comprehensive Guide to Different Types and More
Introduction:
The Goods and Service Tax (GST) Act, a groundbreaking tax reform, came into effect in India on July 1st, 2017. Replacing a myriad of indirect taxes, GST stands as a unified, comprehensive tax law for the entire nation. This guide unravels the complexities surrounding GST, exploring its types, objectives, and the entities liable for payment.
Understanding GST:
Goods and Services Tax is a value-added tax applied to the supply of goods and services for domestic consumption. Unlike its predecessors, GST is an all-encompassing, single indirect tax, impacting the final price of a product. Levied by the Central Government, intrastate transactions see the distribution of this tax under CGST and SGST.
Objectives of GST:
GST aims to eliminate multiple tax systems, enhance business compliance, reduce prices, bolster overall national revenue, and elevate efficiency and productivity.
Replaced Taxes with GST:
GST has streamlined the tax landscape by replacing various levies such as VAT, Octroi, Entertainment Tax, Service Tax, and more.
Different Types of GST Tax:
Based on the nature of transactions, GST manifests in three types - SGST, CGST, and IGST. SGST is applicable to intrastate transactions within a state, CGST applies to intrastate transactions levied by the Central Government, and IGST is for inter-state transactions.
Components of GST:
SGST: State Goods and Services Tax, levied on intrastate transactions, benefits the state government.
CGST: Central Goods and Services Tax, also for intrastate transactions, shares revenue equally between the central and state governments.
IGST: Integrated Goods and Services Tax, for inter-state transactions, distributes revenue between the state and central governments.
Application of Different Types of GST:
An illustrative example demonstrates the application of SGST, CGST, and IGST in various scenarios, shedding light on the division of GST and the benefiting authorities.
Difference Between the Types of GST:
Differences among SGST, UGST, CGST, and IGST, including collecting authority, priority of tax credit use, applicable transactions, and benefiting authority, are succinctly outlined for clarity.
Who is Liable to Pay GST?
Several categories of individuals, including those registered under GST making taxable supplies, those under the reverse charge mechanism, persons required to deduct tax at source, and e-commerce operators, are liable to pay GST.
Goods Exempted from GST Payment:
Certain goods and services enjoy exemptions under GST, spanning categories like food, raw materials, instruments/tools, and miscellaneous items.
In conclusion:
This comprehensive guide serves as your roadmap to navigate the labyrinth of Goods and Service Tax in India. As you explore the intricacies of GST, understanding its types, objectives, and applications empowers you to navigate the dynamic landscape of taxation with confidence.
Author
Pluto Team
Share with your friends
Help you friends in learning more about personal finance by share this blog.
Help you friends in learning
more about personal finance
by share this blog.
Help you friends in learning more about personal
finance by share this blog.
Silimar Blogs
West Bengal Caste Certificate
West Bengal Caste Certificate
June 22, 2024
Star Health Insurance Customer Care
Star Health Insurance Customer Care
June 22, 2024
SBI Savings Account
SBI Savings Account
June 22, 2024
How to Check FASTag Balance
How to Check FASTag Balance
June 22, 2024
Bhoomi Online - Karnataka's Land Records & RTC
Bhoomi Online - Karnataka's Land Records & RTC
June 22, 2024
Current Petrol Price in Bangalore
Current Petrol Price in Bangalore
June 22, 2024
View More
Download App
Explore More
Managing assets totalling over 1 crore+