- 25th August 2017
- Posted by: web@taxes
- Category: Know GST
India is a federal country where both the Centre and the States have been assigned the powers to levy and collect taxes. Both the levels of Government have distinct responsibilities to perform for which they need to raise resources.
- Central GST or CGST – To be charged by the central government.
- State GST or SGST – To be charged by the state government.
- Integrated GST or IGST – To be charged by central government on the inter-state supply of various goods and services.
There will be two components of GST – Central GST (CGST) and State GST (SGST). Both Centre and States will simultaneously levy GST across the value chain. Tax will be levied on every supply of goods and services. Centre would levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State.
In case of inter-State transactions, the Centre would levy and collect the Integrated Goods and Services Tax (IGST) on all inter-State supplies of goods and services. The IGST would be equal to CGST plus SGST. The IGST mechanism has been designed to ensure seamless flow of input tax credit from one State to another.
In one invoice either CGST & SGST or IGST is available. Not all in one invoice