What is CGST?

It means Central GST(Central Goods and Service Tax)

It is charged on local sales

 

What is SGST?

It means State GST(State Goods and Service Tax)

It is charged on local sales (sales within state)

 

What is IGST?

It means Intergrated GST

It is charged on interstate sales(sales outside state)

 

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 CGST, SST AND IGST?

Suppose government has declared Rate of ITEM as 5%

If we sale within state,we willl charge

 CGST  2.5% and SGST  2.5%

If we sale outside state,we will charge

IGST = 5%

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

View Answer

 

Example 2

Solve last question assuming it was Interstate Sales 

View Answer

Difference between CGST SGST and IGST?

CGST SGST  IGST
Full form of CGST is
Central Goods and Service Tax 
Full form of SGST is
State Goods and Service Tax 
Its full form is
Integrated Goods and Service Tax
CGST is charged on Local Sales
(Sales within State)
SGST is charged on Local Sales (Sales within State)
IGST is charged on Interstate 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
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)

 

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

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 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.