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Notification
Basics of GST i.e. Goods and Services Tax, Concept of CGST, SGST and IGST
April 3, 2021
GST
| Indirect Taxes State Govt | Indirect Taxes Central Govt |
| Local Sales Tax (LST) abolished between 2003- 2008 | Central Sales Tax (CST) |
| VAT | Excise |
| Service Tax |
All these taxes have been submerged now and now there is one Tax whose name is Goods and Services Tax.
Now there will be 3 Taxes in GST:-
(a) Central Goods and Services Tax (CGST)
(b) State Goods and Services Tax (SGST) or Union Territory Goods and Services Tax (UTGST)
(c) Integrated Goods and Services Tax (IGST)
| Particulars | CGST | SGST | IGST |
| GST Rate | 2.5 | 2.5 | 5 |
| GST Rate | 6 | 6 | 12 |
| GST Rate | 9 | 9 | 18 |
| GST Rate | 14 | 14 | 28 |
CGST+ SGST = IGST
Concept of CGST SGST and IGST
Same State transactions
| Delhi | Delhi | Delhi | |
| Particulars | A | B | C |
| Sales | 100 | 150 | 180 |
| CGST 5% | 5 | 7.5 | 9 |
| SGST 5% | 5 | 7.5 | 9 |
| Delhi Govt will Receive | 5 | 7.5-5 =2.5 | 9-7.5=1.5 |
| CG will Receive | 5 | 7.5-5 =2.5 | 9-7.5=1.5 |
Different State transactions
| Delhi | UP | Haryana | |
| Particulars | A | B | C |
| Sales | 100 | 150 | 180 |
| IGST 10% | 10 | 15 | 18 |
| CG will Receive | 10 | 15-10=5 | 18-15=3 |
This Share of Central Govt will also be divided between Delhi, UP and Haryana Govt which is irrelevant for us.
For your knowledge it will be divided in 50-50 Ratio by each Central Govt and respective State Government and input tax credit will be passed on by CG only.
Thanks
CA Rahul Gupta
Chairman@carahulgupta.com
