What is CGST, SGST and IGST ?

What is CGST, SGST and IGST ?

There are three components of GST tax law Named CGST, SGST and IGST. CGST and SGST are applicable within the state while IGST is applicable in the course of interstate trading.


Since GST subsumed both circuitous assessments of focal government (extract obligation, benefit charges, customary obligation, and so on) and state governments (VAT, Luxury impose, and so forth.),  both the administration now rely upon GST for their backhanded expense income. Accordingly the GST rate is made out of two rates, one of CGST and one of SGST.

Along these lines, while making an interstate deal (i.e., deal inside a similar state), CGST gathered will go to the focal government and SGST gathered will go the individual state government in which deal is made.

For Example: – A merchant in Maharashtra pitches products to the shopper worth Rs. 10,000. The GST rate is 18%, including CGST rate of 9% and SGST rate of 9%. In such a case the merchant will gather Rs. 1800, Rs. 900 will go to the focal government and Rs. 900 will go to the Maharashtra government.


GST is an utilization based duty, i.e.; the assessment ought to be gotten by the state in which the products or administration is devoured not by the state in which such merchandise are fabricated.

IGST is intended to guarantee a consistent stream of info assess credit starting with one state then onto the next. It is outlined so a state doesn’t need to manage each other state to settle the expense sums. A state needs to manage just Central government.

Consequently, if between state deals (i.e., deal starting with one state, then onto the next state) is made then the vendor will charge IGST set up of CGST + SGST.

For example: – A dealer in Maharashtra sells goods to its dealer in Rajasthan worth Rs. 1,00,000. The GST rate is 18% comprising of CGST rate of 9% and SGST rate of 9%. In such a case the dealer has to charge Rs. 18,000 as IGST.

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