Tax Insight

Your Quick Guide To Understanding Types of GST in India

By LoanPandit

January 20, 2024

Central Goods and Services Tax (CGST)

01.

– Levied by the central government on intra-state and inter-state supply of goods and services. – The current CGST rates are 5%, 12%, 18%, and 28%. – The revenue collected from CGST is shared equally between the central and state governments.

State Goods and Services Tax (SGST)

02.

– Levied by the state government on intra-state supply of goods and services. – The SGST rates are the same as the CGST rates (5%, 12%, 18%, and 28%). – The revenue collected from SGST goes entirely to the state government.

Integrated Goods and Services Tax (IGST)

03.

– Levied by the central government on inter-state supply of goods and services. – The IGST rate is equal to the sum of the CGST rate and the SGST rate applicable on the supply. – For example, if the CGST rate is 12% and the SGST rate is 12%, the IGST rate will be 24%. – The revenue collected from IGST is shared between the central and state governments in the ratio of 50:50.

Union Territory Goods and Services Tax (UTGST)

04.

– Levied by the Union Territory government on intra-state supply of goods and services within the Union Territory. – The UTGST rates are the same as the SGST rates (5%, 12%, 18%, and 28%). – The revenue collected from UTGST goes entirely to the Union Territory government.