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What are CGST, SGST, UTGST, and IGST?

GST is collected as CGST, SGST, UTGST, and IGST on the basis of where the goods and services were produced and purchased.

Let us look at the difference between CGST, SGST, UTGST, and IGST with the help of examples.

Central Goods and Services Tax (CGST) State Goods and Services Tax (SGST)
It is collected by the central government on goods and services that are produced, supplied, and consumed within one state. It is collected by the state government on goods and services that are produced, supplied and consumed within one state.

 

Let us understand what is CGST and SGST with an example:

Lakshmi, a cloth dealer in Kerala sold a salwar-kameez set that costs ₹1000 to Pallavi, who also lives in Kerala.
The GST on this transaction is 18%. This means, CGST is 9% and SGST is 9%. So, ₹90 will go to the state and ₹90 will go to the centre.

Let us understand what is CGST and SGST with an example:

Union Territory Goods and Services Tax (UTGST) Integrated Goods and Services tax (IGST)
It is a tax collected on goods and services in the Union Territories of India like Andaman and Nicobar Islands, Daman and Diu, Lakshadweep, etc. Delhi and Puducherry, although Union Territories, will fall under SGST and not UTGST. It is collected by the centre when goods and services are supplied and consumed between two or more states.

Let us understand IGST with an example:

Lakshmi, a cloth dealer in Kerala sold a salwar-kameez set that costs ₹1000 to Roshni, who lives in Bihar.
The GST for this transaction is 18%.
This means, Lakshmi has to charge
IGST of ₹180 which will go to the centre.

Let us understand IGST with an example:
Points to remember

Points to remember

Here are some key takeaways from this section that you should remember.

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    Goods and Services Tax (GST) is an indirect tax we pay when we buy goods and services.

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    GST is collected as CGST, SGST, UTGST and IGST on the basis of where the goods and services were produced and purchased.

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    GST is split equally between the centre and the state as CGST and SGST.

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