web analytics
CGST SGST  Integrated GST (Interstate GST)
Full form of CGST is
Central Goods and Service Tax 
Full form of SGST is
State Goods and Service Tax 
Its full form is
IGST Act (or Integrated Goods and Service Tax)
CGST is also charged on Local Sales within State
SGST is also charged on Local Sales within State
IGST is charged on Central Sales (Sales Outside State)
It is charged and collected by Central Government
It is charged and collected by State Government
It is charged and collected by Central Government on Interstate Supply of Goods and Services
It has replaced taxes like Central Excise and Service tax
It has replaced taxes like VAT, Luxury tax and Entertainment tax
It has replaced taxes like CST(Central Sales Tax)

Earlier Indirect Tax Before GST

Old INDIRECT TAX IMAGE.png

New Indirect Tax After Implementation of GST

INDIRECT TAX IMAGE.png

 

 

Which Type of GST on Which Sales

TYPE OF SALES TAX CHARGED

LOCAL SALE WITHIN STATE

CGST+ SGST

CENTRAL SALE OUTSIDE STATE IGST

 

What will be Rate of IGST?

Suppose  Rate of tax on CGST is 9% and SGST is 9%

Rate on IGST will be 9%+9%=18%

Hence

TAX RATE ON  IGST

=TAX RATE ON CGST+TAX RATE ON SGST 

  Types of sale.jpg

 

Example 1

Sales Amount=20000

Suppose Rate of tax on goods as per CGST is 9% and SGST is 9%

Make Bill assuming it is Local Sales within State

-a-

Then on Sales within State of 20000

CGST=9%*20000=1800

SGST=9%*20000=1800

Total=23600

 -ea-

 

Example 2

Solve last question assuming it was Interstate Sales 

-a-

In this case,

Sales Amount=20000

IGST=18%*2000=3600

Total=23600

 -ea-

 

 

  1. Tax Practical
  2. GST - Goods and Services Tax, India
Ask Download

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 7 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
Jail