CGST, SGST, UTGST, IGST

What Is Central Goods and Services Tax (CGST)?

It is an indirect tax levied and collected by the Central Government on the intra-state supplies. Such supplies do not include alcoholic liquor for human consumption. This tax levy is governed by the Central Goods and Services Act, 2017. And such a tax is levied on the transaction value of the goods or services supplied as per section 15 of the CGST Act. The transaction value is the price actually paid or payable for the said supply of goods or services.

Further, the liability to pay CGST shall arise at the time of supply of goods or services as specified in section 12 and 13 of the CGST Act. The SGST portion will also be levied on the same intra-state supply of goods. But SGST will be governed by the SGST Act, 2017.

Say for instance, Omkar Enterprises, a manufacturer in Punjab, supplies goods to Vipul Traders, a dealer in Punjab. Goods worth Rs 1,00,000 are supplied by Omkar Enterprises after adding GST @ 18%. Since it is an intra-state supply, GST gets deposited to both Central and State Governments. But the total GST amounting to Rs 18,000 gets deposited equally into separate heads. This means, Rs 9,000 gets deposited into CGST account. And another Rs 9,000 gets deposited into SGST head.

VI. What Is State Goods and Services Tax (SGST)?

It is an indirect tax levied and collected by the State Government on the intra-state supplies. Such supplies do not include alcoholic liquor for human consumption. This tax levy is governed by the State Goods and Services Act (SGST), 2017. And such a tax is levied on the transaction value of the goods or services supplied as per section 15 of the SGST Act. The transaction value is the price actually paid or payable for the said supply of goods or services.

Further, the liability to pay SGST shall arise at the time of supply of goods or services as specified in section 12 and 13 of the SGST Act. The CGST portion will also be levied on the same intra-state supply of goods. But CGST will be governed by the CGST Act, 2017.

VII. What Is Integrated Goods and Services Tax (IGST)?

It is an indirect tax levied and collected by the Central Government on the inter-state supply of goods or services. Such supplies do not include alcoholic liquor for human consumption. This tax levy is governed by the Integrated Goods and Services Tax Act, 2017. And the same is apportioned between Centre and State governments.

For instance, Prakash Ltd, a manufacturer in Punjab, supplies goods to Verma Traders, a dealer in Maharashtra. Goods worth Rs 1,00,000 are supplied by Prakash Ltd after adding GST @ 18%. Since it is an inter-state supply, GST gets deposited only to the Central Government. Therefore, total GST amounting Rs 18,000 gets deposited into CGST head only.

VIII. What Is Union Territory Goods and Services Tax (UTGST)?

It is an indirect tax levied and collected by the Union Territory on the intra-state supply of goods or services. Such supplies do not include alcoholic liquor for human consumption. This tax levy is governed by the Union Territory Goods and Services Act (UTGST), 2017. And such a tax is levied on the transaction value of the goods or services supplied as per section 15 of the CGST Act, 2017. The transaction value is the price actually paid or payable for the said supply of goods or services.

According to the UTGST Act, 2017, UTGST will be applicable on the following territories:

• Andaman and Nicobar Islands
• Lakshwadeep
• Dadra and Nagar Haveli
• Daman and Diu
• Chandigarh
• Other Territory

Delhi and Puducherry are the other two Union Territories. But this Act is not applicable there as they have their own State Legislature and Government. For both the territories, State GST is applicable.