GST Basics

Tax Practical
GST - Goods and Services Tax, India

#### 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

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

Example 2

Solve last question assuming it was Interstate Sales

Difference between CGST,SGST AND IGST

 CGST SGST IGST Its full form is Its full form is Its full form is Central Goods and Service Tax State Goods and Service Tax Integrated Goods and Service Tax It is charged on  local sales (Sales within State) It is also charged on  local sales (Sales within State) It is charged on Interstate sales (Sales Outside State) .It is also charged on Imports This tax is levied and administered by Central Govt This tax is levied and administered by State Govt This tax is levied and administered by Central Govt It is the Revenue of Central Govt It is the Revenue of State Govt Its Revenue is shared between Central and State Govt 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)

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