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

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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

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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
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)

 

 

  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.