What is difference between CGST, SGST & IGST

What is difference between CGST, SGST & IGST

Why we are getting three taxes – CGST SGST and IGST?

India is a federal nation where both the Centre and the state have been assigned the powers to levy and collect taxes. both the tiers of presidency need to elevate assets as they have awesome constitutional obligations to perform. A dual GST in which Centre and state concurrently levy GST will, therefore, now not handiest be in line with the Constitutional requirement of financial federalism however also be positive to all stakeholders. below you get the more clear picture about what is difference between CGST, SGST & IGST. Taxpayers are allowed to take input tax credit 3 taxes being levied accordingly ensuring “One nation one tax”. below you get the more clear picture about what is difference between CGST, SGST & IGST.

Tax under GST

GST is a consumption primarily based tax i.e. the tax bought to be obtained through the nation wherein the products or services are eating up and now not through the state wherein such goods are synthetic. IGST will ensure seamless drift of enter tax credit score between inter-state motion of products. One country has to deal handiest with the Centre authorities to settle the tax quantities and not with every other nation, therefore making the system easier.

What is difference between CGST, SGST & IGST

CGST: CGST means Central goods and service tax to replace the existing tax like service tax, excise, etc. and It is levied by central government.

SGST: SGST means State goods and service tax, replace the existing tax like sales tax, luxury tax, entry tax, etc. and it is levied by the state government.

IGST: IGST refers to the integrated goods and services tax and it is a combined form of CGST and IGST and it is levied by central government.

Collection of tax: Central Authority and State Authority Applicability Intra-state Interstate Registration upto 20 Lakh limit ( 10 lakh for north eastern states) Registration is compulsory in collection of taxes.

Composition: The supplier can use the benefit up to 50 lakh. Scheme not applicable In case you have any query feel free to contact us. you can also check our services for GST Registration and GST Filling.