OVERVIEW
GST is a Central Tax comes into force from 1st July 2017. GST is an Indirect Tax. GST subsumes various taxes such as Sales Tax (VAT), Excise Duty, Service Tax, Professional Tax, Entertainment Tax, etc. GST applies to all businesses and professions such as Manufacturer, Whole-seller, Trader, Job Worker, Transporter, Engineer, Lawyer, Chartered Accountants, or other professionals. If a person supplies any goods or services to another person, he has to charge GST on the value of supply made. GST applies to each state of supply. For example, If a Manufacturer supplies the goods to wholesalers, the Manufacturer has to charge GST on a supply made to the wholesaler. When the wholesaler supplies the said goods to the trader, the wholesaler has to charge GST on a supply made to Trader and when the trader made a supply to the consumer, the trader has to charge GST on a supply made to consumer.
1. IGST (Integrated GST) – It is applicable at the time of supply of Goods or Services from one State to Another State or Union Territory.
2. CGST (Central GST) – It is applicable at the time of supply of Goods or Services within a State or Union Territory. CGST indicates the tax portion of the Central Government under GST.
3. SGST (State GST) – It is applicable at the time of supply of Goods or Services within a State or Union Territory. SGST indicate the tax portion of the State Government under GST.
There are three types of GST Act.
1. IGST (Integrated GST) – It is applicable at the time of supply of Goods or Services from one State to Another State or Union Territory.
2. CGST (Central GST) – It is applicable at the time of supply of Goods or Services within a State or Union Territory. CGST indicates the tax portion of the Central Government under GST.
3. SGST (State GST) – It is applicable at the time of supply of Goods or Services within a State or Union Territory. SGST indicate the tax portion of the State Government under GST.