What are CGST, SGST, IGST?

Definitions:

  • SGST : State GST
  • CGST : Central GST
  • IGST : Integrated GST

GST is levied in two forms when the services offered based on the location of the supplier (Society) and the location of the Customer (Members / Non-Members)

If both supplier and customer are from same state the supply is “intra-state or within state” supply.

If supplier and customer are from different states the supply is “inter-state” supply.

If the supply is within state or intra-state, GST is levied as combination of CGST and SGST.

For example, 18% GST is levied as 9% CGST and 9% SGST when the sale is with in the state.

If the supply is across states or inter-state, GST is levied as IGST.

For example, 18% GST is levied as 18% IGST when the sale is across states.

IGST credit will first be applied to set off IGST. Any balance is used then to set off CGST. Any balance is then used to set off SGST.

There is also UGST – to be used in Union Territories (in place of SGST).

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