Types of GST

Types of GST, comparison and applicability

India has adopted a Dual GST Model under which tax is levied simultaneously by both Central and State government on taxable supplies which takes place within State or Union Territory. On inter-state supplies, tax is levied by Central Government.

Central GST - CGST State GST - SGST Integrated GST - IGST
Tax Levied By Central Government, on Intra-State supplies of Goods and/or services State Government, on Intra-State supplies of Goods and/or services Central Government, on Inter-State supplies of Goods and/or services
Taxes that it will replace Service tax, excise duty, countervailing duty (CVD), special additional duty (SAD), Additional duties of excise(ADE), and any other indirect central levy VAT, sales tax, luxury tax, entry tax ,entertainment tax, purchase tax, Octroi, taxes on lottery Central sales tax (CST)
Applicability Supplies within a state Supplies within a state Interstate supplies and import
Input Tax Credit Against CGST and IGST Against SGST and IGST Against CGST,SGST and IGST
Tax Revenue Sharing Central government State government Shared between state and central governments
Free Supplies CGST is applicable on free supplies SGST is applicable on free supplies IGST is applicable on free supplies

The above table explains the difference between the types of GST, which form the part of GST as a whole.

Registration under GST

Every supplier of goods or services is required to obtain registration in the sState or the Union Territory from where he makes a taxable supply if his aggregate turnover exceeds Rs. 20 lakhs (40 Lakhs w.e.f. 1st April, 2019) in a Financial Year. However, compulsory registration is required if the person makes inter-state supplies i.e. threshold limit of Rs. 20 lakhs shall not apply for registration in this case.

However, the limit of Rs. 20 lakhs would be 10 lakhs in case of Special Category States i.e. Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.

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