CGST, SGST, and IGST are three types of taxes that are imposed on the sale and supply of goods and services in India. These taxes are implemented as part of the Goods and Services Tax (GST) system, which was introduced in 2017 as a way to simplify and streamline the country’s indirect tax system.
The Central GST (CGST) is a tax imposed by the Central Government on the sale and supply of goods and services within a state. The State GST (SGST) is a tax imposed by the State Government on the same.
The Integrated GST (IGST) is a tax imposed by the Central Government on the inter-state sale and supply of goods and services. It is also applied on imports. The revenue from IGST is shared between the Central and State Government.
When a sale of goods or services takes place within a state, the CGST and SGST are both applicable. The tax is split equally between the Central and State Governments. For example, if the GST rate is 18%, the CGST rate would be 9% and the SGST rate would also be 9%.
However, when a sale of goods or services takes place between two different states, the IGST is applicable. The revenue from IGST is shared between the Central and State Governments.
It’s important to note that GST rates vary depending on the type of goods or services being sold, and are periodically reviewed and revised by the government. Businesses are required to register for GST, file returns and pay taxes as per the GST laws.
Overall, CGST, SGST, and IGST are three types of taxes that are imposed on the sale and supply of goods and services in India as part of the GST system. These taxes are applied differently depending on whether the sale takes place within a state or between different states. Businesses are required to comply with the GST laws and regulations by registering, filing returns, and paying taxes.