The GST rate of such goods is 18% comprising CGST of 9% and SGST of 9%. Raj is a goods dealer in Karnataka and has sold goods worth Rs 20,000 to Mr Anand who is also a dealer in Karnataka. Still confused! Let’s understand the concepts with an example. As explained above, CGST is levied on the same intrastate supply of goods and services but will be governed by the Central Government. State Goods and Services Tax or SGST is an indirect tax levied on intrastate supplies of goods and services by the State Government. This implies that both the Central and the State governments will agree on combining their levies with an appropriate proportion for revenue sharing between them. SGST will also be levied on the same Intra State supply but will be governed by the State Government. CGST is a tax charged on the intrastate supply of goods and services by the central government and is governed by the CGST Act, 2017. What is the full form of CGST?ĬGST stands for Central Goods and Services Tax. Let’s understand the concept of CGST, SGST, and IGST in detail. Similarly, if the supply happens between two different states, the supplier charges IGST. If the supply of goods happens within the same state, CGST and SGST will be applied by the supplier.
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February 2023
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