What is the difference between CGST, SGST and IGST?
by Paras Mehra 19K
CGST, SGST and IGST are three components of GST tax law. CGST and SGST are applicable within the state while IGST is applicable in the course of interstate trade and commerce.
Let us understand the difference between the trios;
|
Basis of Distinction |
Central GST |
State GST |
Integrated GST |
|
Meaning |
It is levied by Central government to replace the existing tax like service tax, excise, etc |
It is levied by State government to replace the existing tax like sales tax, luxury tax, entry tax, etc. |
It is a combined form of CGST and SGST levied and collected by Central government. |
|
Applicability |
It is applicable only within the state |
It is applicable only within the state |
It is applicable only in the course of interstate supply. |
|
Input Tax Credit |
The credit of CGST, is available only against CGST and IGST |
The credit of SGST is available only against SGST and IGST |
The credit of IGST is available against CGST, SGST and IGST. |
|
Collection of tax |
It is collected by central government |
It is collected by State government |
It is collected by central government |
|
Exemption limit |
The exemption limit of Rs.20 Lakh is applicable |
The exemption limit of Rs.20 Lakh is applicable |
No exemption limit is applicable. |
|
Composition Scheme |
The dealer, can use the benefit of composition scheme up to turnover of 50 lakh. |
The dealer can use the benefit of composition scheme up to turnover of 50 lakh. |
Composition scheme is not applicable in the course of interstate supply. |
|
Free Supplies |
Applicable on free supplies |
Applicable on free supplies |
Applicable on free supplies |
|
Registration |
No registration till the turnover crosses 20 Lakh (10 Lakh in north eastern states). |
No registration till the turnover crosses 20 Lakh (10 Lakh in north eastern states). |
Registration mandatory if any supply is made outside the state. |
Conclusion
A basic difference between the trios has been explained above. However, GST is so wide and complicated that there will always be some miseries unanswered. Hence, if you have any doubt or query you can ask us direct through our CONTACT FORM.