Notification Basics of GST i.e. Goods and Services Tax, Concept of CGST, SGST and IGST
Financial Year: 2017
GST
|
Indirect Taxes State Govt |
Indirect Taxes Central Govt |
|
Local Sales Tax (LST) abolished between 2003- 2008 |
Central Sales Tax (CST) |
|
VAT |
Excise |
|
|
Service Tax |
All these taxes have been submerged now and now there is one Tax whose name is Goods and Services Tax.
Now there will be 3 Taxes in GST:-
(a) Central Goods and Services Tax (CGST)
(b) State Goods and Services Tax (SGST) or Union Territory Goods and Services Tax (UTGST)
(c) Integrated Goods and Services Tax (IGST)
|
Particulars |
CGST |
SGST |
IGST |
|
GST Rate |
2.5 |
2.5 |
5 |
|
GST Rate |
6 |
6 |
12 |
|
GST Rate |
9 |
9 |
18 |
|
GST Rate |
14 |
14 |
28 |
CGST+ SGST = IGST
Concept of CGST SGST and IGST
Same State transactions
|
|
Delhi |
Delhi |
Delhi |
|
Particulars |
A |
B |
C |
|
Sales |
100 |
150 |
180 |
|
CGST 5% |
5 |
7.5 |
9 |
|
SGST 5% |
5 |
7.5 |
9 |
|
Delhi Govt will Receive |
5 |
7.5-5 =2.5 |
9-7.5=1.5 |
|
CG will Receive |
5 |
7.5-5 =2.5 |
9-7.5=1.5 |
Different State transactions
|
|
Delhi |
UP |
Haryana |
|
Particulars |
A |
B |
C |
|
Sales |
100 |
150 |
180 |
|
IGST 10% |
10 |
15 |
18 |
|
CG will Receive |
10 |
15-10=5 |
18-15=3 |
This Share of Central Govt will also be divided between Delhi, UP and Haryana Govt which is irrelevant for us.
For your knowledge it will be divided in 50-50 Ratio by each Central Govt and respective State Government and input tax credit will be passed on by CG only.
Thanks
CA Rahul Gupta
Chairman@carahulgupta.com