FRAMEWORK OF GST IN
INDIA
- CGST, SGST, IGST
FATHIMA K T
ROLL NO. 32
INTRODUCTION
The Goods and Services Tax (GST) is a comprehensive,
multi-stage, destination-based tax levied on every value
addition in India.
It was introduced on July 1, 2017, under the 101st
Constitutional Amendment Act, 2016.
GST subsumes multiple indirect taxes, such as service
tax, VAT, excise duty, and others, simplifying India's
indirect tax structure.
FRAMEWORK OF GST IN
INDIA
India follows a dual GST model, which means that both the central and state
governments administer the tax. The key components of GST are:
CGST (Central Goods and Services Tax): Levied by the Central Government on
intra-state supplies of goods and services
SGST (State Goods and Services Tax): Levied by the State Government on
intra-state supplies. The revenue collected is shared between the state and
central government.
IGST (Integrated Goods and Services Tax): Levied by the Central Government
on inter-state supplies (between different states) of goods and services. It is also
applicable to imports and exports. The tax is divided between the central and
respective state governments.
UTGST (Union Territory Goods and Services Tax): Levied on the supply of
goods and services in Union Territories without a legislature, like Andaman and
Nicobar Islands, Lakshadweep, etc.
GST Council
GST Registration
GST Returns
GST Rates
Input tax credit (ITC)
E –way Bill
Anti Profiteering mechanism
CGST
Central Goods and Services Tax (CGST) is one of the key
components of the dual GST system in India, which was
introduced as part of the Goods and Services Tax (GST) regime
on July 1, 2017. Under this system, both the central and state
governments levy GST on intra-state supplies (i.e., goods and
services provided within the same state).
For example, if a seller in Delhi sells goods to a buyer in Delhi,
CGST and SGST (State GST) will be applied to the transaction.
SGST
State Goods and Services Tax (SGST) is one of the
key components of the dual Goods and Services Tax
(GST) system implemented in India. SGST is levied by
the State Government on the supply of goods and
services within a state, as part of the overall GST
structure, which was introduced on July 1, 2017.
Example of SGST
Calculation
Suppose a shop in Bengaluru (Karnataka) sells a
product worth ₹1,00,000, and the applicable
GST rate is 18%. The tax will be split as follows:-
**CGST** (9%) = ₹9,000- **SGST** (9%) =
₹9,000Thus, the total GST of ₹18,000 will be
collected, with ₹9,000 going to the Karnataka
state government (SGST) and ₹9,000 going to
the central government (CGST).
IGST
**Integrated Goods and Services Tax (IGST)** is
a key component of India’s **dual GST** system,
designed to handle taxation on inter-state and
international trade of goods and services. IGST is
levied by the **Central Government** under the
Integrated Goods and Services Tax Act, 2017.
