UNDERSTANDING GST: CGST, SGST AND IGST

GST is a comprehensive tax system that replaced multiple indirect taxes in India.

CGST is the tax levied by the central government on intra-state supplies of goods and services.

SGST is the tax levied by the state government on intra-state supplies of goods and services.

IGST is the tax levied by the central government on inter-state supplies of goods and services.

In case of inter-state supplies, IGST is collected by the central government and then distributed to the respective state governments.

The GST rates for different goods and services are decided by the GST Council.

GST has simplified the tax system in India and made it easier for businesses to comply with tax regulations.