Difference Between: CGST vs SGST vs IGST?

Last Updated at: October 12, 2020
48918
income tax savings
According to officials of the finance ministry, Strict steps will be taken against reckless exporters who attempt to claim Rs 2.020 crore for integrated goods and services tax refunds.

 

Recently, the Goods & Services Tax (GST) was introduced and it replace over 10 other existing taxes levied by the central and state governments. The three main concepts that you need to know about are GST, Central GST and Integrated GST. From here, you will get to know about these and to whom these are applicable.

Goods & Services Tax (GST) will replace over 10 central and state taxes, so obviously it comes with new concepts that will need understanding: Central GST, State GST and Integrated GST are three of them. Let’s find out what they are:

Browse through our articles on servies provided at Vakilsearch, and just let us know if we can help you with your company registration or tax filing or trademark registration.

 

Central GST

Central GST is the component of GST that will be levied by the central government on all items, both goods and services. It only applies to intra-state trade. A dealer can use input tax credit of CGST against CGST or IGST.

Register your cgst sgst igst

State GST

State GST is the component of GST that will be levied by the state government on all items, both goods and services. It only applies to intra-state trade. A dealer can use input tax credit of SGST against SGST or IGST.

Integrated GST

Integrated GST is the component of GST that will be levied by the central government in case of inter-state trade. It is applicable on all items, both goods and services. A dealer can use input tax credit of IGST against SGST, CGST or IGST.

What is the Exemption Limit?

GST is applicable to all dealers with a turnover of over Rs. 20 lakh (Rs. 10 lakh in North Eastern states) in case they are involved exclusively in intra-state trade (i.e. their supplies and sales are within a single state). In case of any inter-state activity, GST is applicable regardless of turnover.

Composition Scheme

The GST Composition Scheme is applicable only on traders operating in a single state with a supply turnover of less than Rs. 50 lakh. Supply turnover includes any freebies, discounts and even goods and services not liable to be taxed.

Remember that GST is applicable to those dealers who earn a turnover of over Rs. 20 lakh. This amount is Rs. 10 lakh in the North Eastern regions. Notably, this amount is for those involved in intra-state trade. If it is an inter-state trade, then GST is applicable for any turnover that the business makes. It is important to get an understanding and pay the right tax for the income you earn.

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Difference Between: CGST vs SGST vs IGST?

48918
According to officials of the finance ministry, Strict steps will be taken against reckless exporters who attempt to claim Rs 2.020 crore for integrated goods and services tax refunds.

 

Recently, the Goods & Services Tax (GST) was introduced and it replace over 10 other existing taxes levied by the central and state governments. The three main concepts that you need to know about are GST, Central GST and Integrated GST. From here, you will get to know about these and to whom these are applicable.

Goods & Services Tax (GST) will replace over 10 central and state taxes, so obviously it comes with new concepts that will need understanding: Central GST, State GST and Integrated GST are three of them. Let’s find out what they are:

Browse through our articles on servies provided at Vakilsearch, and just let us know if we can help you with your company registration or tax filing or trademark registration.

 

Central GST

Central GST is the component of GST that will be levied by the central government on all items, both goods and services. It only applies to intra-state trade. A dealer can use input tax credit of CGST against CGST or IGST.

Register your cgst sgst igst

State GST

State GST is the component of GST that will be levied by the state government on all items, both goods and services. It only applies to intra-state trade. A dealer can use input tax credit of SGST against SGST or IGST.

Integrated GST

Integrated GST is the component of GST that will be levied by the central government in case of inter-state trade. It is applicable on all items, both goods and services. A dealer can use input tax credit of IGST against SGST, CGST or IGST.

What is the Exemption Limit?

GST is applicable to all dealers with a turnover of over Rs. 20 lakh (Rs. 10 lakh in North Eastern states) in case they are involved exclusively in intra-state trade (i.e. their supplies and sales are within a single state). In case of any inter-state activity, GST is applicable regardless of turnover.

Composition Scheme

The GST Composition Scheme is applicable only on traders operating in a single state with a supply turnover of less than Rs. 50 lakh. Supply turnover includes any freebies, discounts and even goods and services not liable to be taxed.

Remember that GST is applicable to those dealers who earn a turnover of over Rs. 20 lakh. This amount is Rs. 10 lakh in the North Eastern regions. Notably, this amount is for those involved in intra-state trade. If it is an inter-state trade, then GST is applicable for any turnover that the business makes. It is important to get an understanding and pay the right tax for the income you earn.

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A lawyer with 14 years' experience, Vikram has worked with several well-known corporate law firms before joining Vakilsearch.