What is IGST, CGST & SGST / UTGST?

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Sakshi Shah

CGST
GST
IGST
ITC
SGST

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.

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