HOW MANY TYPES OF GST IN INDIA
GST is one indirect tax for the entire country.
“GST is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.”
There are around 160 countries in the world that have GST in place. GST is a destination based taxed where the tax is collected by the State where goods are consumed. India is going to implement the GST from July 1, 2017 and it has adopted the Dual GST model in which both States and Central levies tax on Goods or Services or both.
SGST – State GST, collected by the State Govt.
CGST – Central GST, collected by the Central Govt.
IGST – Integrated GST, collected by the Central Govt.
CGST
CGST is charged on the movement of goods and services of standard commodities and services which can be amended time to time by a separate body. The revenue collected under CGST is for centre. However, input tax credit on CGST is given to states and such input tax could be utilized only against the payment of central GST.
For instance, X, a dealer in Uttar Pradesh sells goods worth Rs. 10,000 to Y in Rajasthan. Thus,CGST would be levied and collected by the centre. Suppose the CGST rate is 8%, thus the dealer would charge Rs. 800 as CGST and this would be collected by the centre.
SGST
SGST is one of the tax components of GST in India. SGST refers to State Goods and Service Tax. It is one of the three categories under Goods and Service Tax (CGST, IGST and SGST) with a concept of one tax one nation. SGST falls under State Goods and Service Tax Act 2017.
It is levied on the Intra State movement of goods and services. The revenue collected under State Goods and Services Tax is for the State Government. However, Input Tax Credit on it is given partly to the Centre and partly to the States as it will be utilized against the payment of both SGST and IGST.
IGST
Under the GST regime, an Integrated GST (IGST) would be levied and collected by the Centre on inter-State supply of goods and services. Under Article 269A of the Constitution, the GST on supplies in the course of interState trade or commerce shall be levied and collected by the Government of India and such tax shall be apportioned between the Union and the States in the manner as may be provided by Parliament by law on the recommendations of the Goods and Services Tax Council. IGST equals to CGST+SGST.
UTGST
UTGST refers to Union Territory Goods and Services Tax. It is the GST applicable on the goods and services supply that takes place in the union territories of India. Union Territory GST will be charged in addition to the Central GST (CGST).
GST under supply of goods and services takes place in Union Territories like Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, Delhi (National Capital Territory of Delhi), Lakshadweep, Puducherry, Ladhakh, Jammu and Kashmir etc. is accounted under UTGST.
Union Territory GST contains same tax rates of 0%, 5%, 12%, 18% and 28%. Tax exemption criteria for goods and services decided by the government for SGST will be same for UTGST.
COMPARISON TABLE OF TYPES OF GST IN INDIA
| BASIS OF DIFFERENCE | CGST | SGST | UTGST | IGST |
| APPLICABILITY | It is applicable on intra-state sales. | It is applicable on intra-state sales. | It is applicable within one union territory | It is applicable on inter-state sales. |
| COLLECTED BY | This is collected by central government. | This is collected by state government. | This is collected by union territory government. | This is collected by central government. |
| BENEFITTING AUTHORITY | The benefitting authority under CGST is central government. | The benefitting authority under SGST is state government. | The benefitting authority under UTGST is union territory government. | The benefitting authority under IGST is central government as well as state government. |
| INPUT TAX CREDIT USE | The input tax credit is used for CGST and IGST. | The input tax credit is used for SGST and IGST. | The input tax credit is used for UTGST and IGST. | The input tax credit is used for IGST, CGST and IGST. |
| TAXES SUBSUMED | The taxes subsumed under CGST are Central Excise Tax, Services Tax etc. | The taxes subsumed under SGST are VAT, Luxury Tax, Entertainment Tax etc. | The taxes subsumed under UTGST are VAT, Luxury Tax, Entertainment Tax etc. | The tax subsumed under IGST is Central sales tax. |
| REGISTRATION | There is no registration under CGST until the turnover crosses Rs. 20 lakhs. (Rs. 10 lakhs in case of North-eastern states). | There is no registration under SGST until the turnover crosses Rs. 20 lakhs. (Rs. 10 lakhs in case of North-eastern states). | Registration is compulsory under UTGST. | Registration is compulsory under IGST. |
| COMPOSITION SCHEME | The dealer can use up to 75 lacs under the composition scheme. | The dealer can use up to 75 lacs under the composition scheme. | Composition scheme is not applicable. |
JOIN THE CHANNEL ON TELEGRAM
CONNECT ON LINKEDIN
https://www.linkedin.com/in/kajal-mahajan-7549b2197/