GST#2 - Difference Between CGST, SGST, UGST and IGST
The laws that govern taxes on Goods and Services are called GST Acts. Both Centre and State (or
Union Territory) are the beneficiaries and hence there are two Acts to collect any transaction which
happens within any state/Union Territory and one Act for supply between two different states or Union Territories.
Central GST (CGST)
State/Union Territories Act of the respective state (SGST/UGST)
For the inter-state transaction, there is Integrated GST (IGST)
Apart from these Acts, there is one more Act, The Goods and Services - (Compensation to States) Act 2017. (GSTCS). This act is introduced to provide for compensation to the States for the loss of revenue arising on account of the implementation of the goods and services tax. This tax is levied on a few specified goods at present. It is expected that such a levy will be collected for five years but this period can be extended on recommendation of the GST Council.
Thus. these are four acts which are the backbones of GST. They are all related and connected to each
other. Apart from this, there would be rules to explain in detail the procedural matters and to prescribe various forms. The Govt. would also issue Notifications from time to time which may exempt, cancel exemptions, change rates, give effect to certain provisions, specify dates from which certain provisions will become applicable.
Union Territory) are the beneficiaries and hence there are two Acts to collect any transaction which
happens within any state/Union Territory and one Act for supply between two different states or Union Territories.
Central GST (CGST)
State/Union Territories Act of the respective state (SGST/UGST)
For the inter-state transaction, there is Integrated GST (IGST)
Apart from these Acts, there is one more Act, The Goods and Services - (Compensation to States) Act 2017. (GSTCS). This act is introduced to provide for compensation to the States for the loss of revenue arising on account of the implementation of the goods and services tax. This tax is levied on a few specified goods at present. It is expected that such a levy will be collected for five years but this period can be extended on recommendation of the GST Council.
Thus. these are four acts which are the backbones of GST. They are all related and connected to each
other. Apart from this, there would be rules to explain in detail the procedural matters and to prescribe various forms. The Govt. would also issue Notifications from time to time which may exempt, cancel exemptions, change rates, give effect to certain provisions, specify dates from which certain provisions will become applicable.
