What is IGST, CGST & SGST / UTGST?

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Sakshi Shah

CGST
GST
IGST
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SGST
Last updated on March 16th, 2023

GST stands for Goods and Services Tax. It is charged on the sale of goods and services. Under the GST regime, there are three different types of taxes introduced – IGST, CGST, SGST / UTGST. In addition to this, GST Compensation Cess is charged on specified goods.

1. IGST – Integrated GST

2. CGST – Central GST

3. SGST – State GST or UTGST – Union Territory GST

Taxpayer should deposit IGST, CGST, SGST collected from the customer with the GST Department and report such sales in the GST Return.

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Example – IGST, CGST, SGST / UTGST

Mr.A in Gujarat sells goods to Mr.B in Gujarat for Rs.50,000. Mr.B resells these goods to Mr.C in Madhya Pradesh for Rs.1,00,000. Now, let us understand the applicability of GST below.

Transaction 1 between Mr A & Mr B: Intra-State Sale

Since the goods are moving from one place to another within the State, CGST @9% and SGST @9% would apply.

CGST = Rs.50,000*9% = Rs.4,500
SGST = Rs.50,000*9% = Rs.4,500

Transaction 2 between Mr.B and Mr.C: Inter-State Sale

Since the goods are moving from one state to another state, IGST @18% would apply.

IGST = Rs.1,00,000*18% = Rs.18,000

* Adjust the CGST Credit with first CGST and then IGST. Adjust the SGST Credit with first SGST and then IGST.

Calculate Input Tax Credit online: ITC calculator
Input Tax Credit under GST means the credit of input tax paid on purchases. ITC can be used to set of against the CGST, SGST and IGST outward tax liabiliy.
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Calculate Input Tax Credit online: ITC calculator
Input Tax Credit under GST means the credit of input tax paid on purchases. ITC can be used to set of against the CGST, SGST and IGST outward tax liabiliy.
Explore

FAQs

When does UTGST apply ?

UTGST i.e. Union Territory GST applies when there is sale of goods or services within a union territory. Following are the union territories in India:

* Chandigarh
* Lakshadweep
* Daman and Diu
* Dadra and Nagar Haveli
* Andaman and Nicobar Islands
* Pondicherry

Eg: Mr.A located in Chandigarh sells goods to Mr.B in Chandigarh for Rs.10,000 taxable at GST @ 12%. In this case, Mr.A will collect CGST @ 6% of Rs. 600 and UTGST @ 6% of Rs. 600 from Mr.B.

Got Questions? Ask Away!

  1. Hey @HarshitShah

    Goods/sectors that are out of the GST ambit include alcohol and specified petroleum products like petroleum crude, high-speed diesel, motor spirit, aviation turbine fuel and natural gas. Alcohol for human consumption continues to attract state excise duty and VAT. Tobacco and tobacco-based products attract both excise duty and GST. Taxes such as stamp duty, toll tax, road tax, electricity duty etc. are not part of GST.

    Hope this helps!

  2. Hey @HarishMehta

    Customs duty and cess as applicable along with IGST+ GST compensation cess. IGST and GST compensation cess shall be paid after adding all customs duty and customs cess to the value of imports.

    Hope this helps!

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