Types of GST in India

In India, there are three types of GST.

CGST is a part of Goods and Service Tax (GST)

CGST means Central Goods and Service Tax, one of the three categories under Goods and Service Tax (CGST, IGST and SGST) with a concept of one tax one nation. CGST falls under Central Goods and Service Tax Act 2016.

For easy understanding, when CGST is being introduced, the present central taxes of Central Excise Duty, Central Sales Tax CST, Service Tax, Additional excise duties, excise duty levied under the medical and toiletries preparation Act, CVD (Additional Customs duty – Countervailing Duty), SAD (Special Additional Duty of customs) surcharges and cesses are subsumed.

CGST is charged on the movement of goods and services of standard commodities and services which can be amended time to time by a separate body. The revenue collected under CGST is for Centre. However, input tax credit on CGST is given to states and such input tax could be utilized only against the payment of Central GST.

SGST is a part of Goods and Service Tax (GST).

SGST means State Goods and Service Tax, one of the three categories under Goods and Service Tax (CGST, IGST and SGST) with a concept of one tax one nation. SGST falls under State Goods and Service Tax Act 2016.

For easy understanding, when SGST is being introduced, the present state taxes of State Sales Tax, VAT, Luxury Tax, Entertainment tax (unless it is levied by the local bodies), Taxes on lottery, betting and gambling, Entry tax not in lieu of Octroi, State Cesses and Surcharges in so far as they relate to supply of goods and services etc. are subsumed.

The revenue collected under SGST is for State Government.

IGST is a part of Goods and Service Tax (GST).

IGST means Integrated Goods and Service Tax, one of the three categories under Goods and Service Tax (CGST, IGST and SGST) with a concept of one tax one nation. IGST falls under Integrated Goods and Service Tax Act 2016.

IGST is charged when movement of goods and services from one state to another. For example, if goods are moved from Tamil Nadu to Kerala, IGST is levied on such goods. The revenue out of IGST is shared by state government and central government as per the rates fixed by the authorities.

Apart from above, there is UTGST, Union Territory Goods and Service Tax meant for Union Territories of India.

The full form of UTGST is Union Territory Goods and Service Tax.    UTGST is a part of Goods and Service Tax in India.

We have already discussed about CGST, IGST and SGST.   As you know, in India, duel GST is implemented.   CGST and SGST against intra state supply (within the state) of goods and services and IGST for interstate supply. 

GST under supply of goods and services takes place in Union Territories like Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, Delhi (National Capital Territory of Delhi), Lakshadweep, Puducherry etc. is accounted under UTGST.

A separate Act is being implemented for Union Territory states to impose and administer GST in India in the name of UTGST Act.  Under UTGST Act, the details of GST rates payable against the movement of goods and services in Union territories are explained.

The UTGST bill is presented in respective states government to implement as UTGST Act.

The above information is about the meaning of UTGST under GST in India, the mechanism of UTGST under GST system in India and union territory states falls under UTGST.

As per GST Law:

Under the GST regime, an Integrated GST (IGST) would be levied and collected by the Centre on inter-State supply of goods and services. Under Article 269A of the Constitution, the GST on supplies in the course of interState trade or commerce shall be levied and collected by the Government of India and such tax shall be apportioned between the Union and the States in the manner as may be provided by Parliament by law on the recommendations of the Goods and Services Tax Council. 

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