SGST, CGST, IGST and UTGST:- The goods and services tax was created recently by the Indian Government and this tax was specially created in order to replace all of the other various types of tax available in India through the implementation of this tax there has been a lot of decrease in the paperwork related to the various list of state tax and Central tax which were going on previously in the country. Given below, we will be sharing with all of you the components of GST and the answer to the question of What is SGST, CGST, IGST, and UTGST– Meaning, Definition & Benefits. You can check out the details related to the tax imposed by the people in our country to start your business.
Table of Contents
Integrated Goods and Services Tax IGST
The integrated goods and services tax or popularly known as IGST is a tax that is under the GST regime and is applied to the interstate supply of goods and services. The central government will be collecting the Tax under IGST and it is further divided among the various states by the Central Government only. This tax is shared between the Central and the State governments. The tax will be imposed when a businessman is selling something from Gujarat to Maharashtra and the 18% tax which will be implied on this transaction will be IGST. The tax will be going to the central government and the central government will then be distributing the tax.
State Goods And Services Tax or SGST
The state goods and services tax or SGST is a tax that is under the GST resign and this tax is especially applicable on transactions that are happening within the same state. This tax will be applicable when you are transferring goods or services within the same state and both the state GST and the central GST are levied in this case. The tax is governed by the SGST Act and the revenue earned through this tax is solely claimed by the respective state government. If a businessman is selling something within a West Bengal State then 18% of the Tax will be taken into consideration and it will be going 9% as SGST and 9% as CGST.
Central Goods And Services Tax or CGST
The state goods and services tax is a tax that is under GST and it will be applicable on the transactions which are going around in the same state and is governed by the CGST act. This tax is governed under the CGST Act and the revenue which is earned from this tax will be collected by the State Government. When a businessman is selling something in the West Bengal State then the GST will be applicable on the transaction and this GST will be distributed partly between CGST and SGST. 18% of the GST will be charged on these transactions are the GST will then be further distributed among the central government and the state government.
Union Territory Goods and Services Tax or UTGST
Union Territory Goods and Services Tax or UTGST is also part of the state goods and services tax but it will be implied on the goods and services which are taken into consideration in the union territories of India and this tax is only available for the supply of goods and services in Andaman and Nicobar Islands, Chandigarh, Daman and Diu, Dadra and Nagar Haveli and Lakshadweep. This tax is also governed under the special act created by the Indian Government and this tax will be collected by the union territory Government.
Input Tax Credit (ITC) Under GST
Given below, we are sharing the details of the input tax credit under GST and other phenomena of GST:-
| CGST | SGST | IGST | UTGST | |
| CGST | 1st | Not Permitted | 2nd | Not Permitted |
| SGST | Not Permitted | 1st | 2nd | Not Permitted |
| IGST | 2nd | 3rd | 1st | 3rd |
| UTGST | Not permitted | Not Permitted | 2nd | 1st |
FAQs For SGST, CGST, IGST and UTGST
The entrepreneurs will have to pay the state goods and services tax if they are taking into consideration goods and services in one particular state.
The businessman will have to hire concerned authorities in order to file for GST by sitting at their respective homes and without visiting the GST office.
The union territory goods and services tax will be applicable on other goods and services which are taken into consideration in particular union territories of India.
The central government will be collecting the GST applicable on the transactions taking place in between two different states.