Types of GST in India

The Four Different Types of GST Tax in India are: 

1. Integrated Goods and Services Tax (IGST)
2. State Goods and Services Tax (SGST)
3. Central Goods and Services Tax (CGST)
4. Union Territory Goods and Services Tax (UTGST)

Additionally, the government has fixed different taxation rates under each, which will be applicable to the payment of tax for goods and/or services rendered.

1. Integrated Goods and Services Tax or IGST

1. The Integrated Goods and Services Tax or IGST is a tax under the GST regime applied on the interstate (between 2 states) supply of goods and/or services and on imports and exports.
2. The IGST is governed by the IGST Act. Under IGST, the body responsible for collecting the taxes is the Central Government which is further divided among the respective states by the Central Government.
3. For instance, if a trader from West Bengal has sold goods to a customer in Karnataka worth Rs.5,000, then IGST will be applicable as the transaction is an interstate transaction.
   1. If the rate of GST charged on the goods is 18%, the trader will charge Rs.5,900 for the goods. The IGST collected is Rs.900, which will be going to the Central Government.

2. State Goods and Services Tax or SGST

1. The State Goods and Services Tax or SGST is a tax under the GST regime that is applicable on intrastate (within the same state) transactions. In the case of an intrastate supply of goods and/or services, both State GST and Central GST are levied.
2. However, the state levies the State GST or SGST on the goods and/or services purchased or sold within the state. It is governed by the SGST Act. The revenue earned through SGST is solely claimed by the respective state government.
3. For instance, if a trader from West Bengal has sold goods to a customer in West Bengal worth Rs.5,000, then the GST applicable on the transaction will be partly CGST and partly SGST.
   1. If the rate of GST charged is 18%, it will be divided equally in the form of 9% CGST and 9% SGST. The total amount to be charged by the trader, in this case, will be Rs.5,900. Out of the revenue earned from GST under the head of SGST, i.e. Rs.450, will go to the West Bengal state government in the form of SGST.

3. Central Goods and Services Tax or CGST

1. Just like State GST, the Central Goods and Services Tax of CGST is a tax under the GST regime that is applicable on intrastate (within the same state) transactions. The CGST is governed by the CGST Act. The revenue earned from CGST is collected by the Central Government.
2. As mentioned in the above instance, if a trader from West Bengal has sold goods to a customer in West Bengal worth Rs.5,000, then the GST applicable on the transaction will be partly CGST and partly SGST.
   1. If the rate of GST charged is 18%, it will be divided equally in the form of 9% CGST and 9% SGST. The total amount to be charged by the trader, in this case, will be Rs.5,900. Out of the revenue earned from GST under the head of CGST, i.e. Rs.450, will go to the Central Government in the form of CGST.

4. Union Territory Goods and Services Tax or UTGST

1. The Union Territory Goods and Services Tax or UTGST is the counterpart of State Goods and Services Tax (SGST) which is levied on the supply of goods and/or services in the Union Territories (UTs) of India.
2. The UTGST is applicable on the supply of goods and/or services in Andaman and Nicobar Islands, Chandigarh, Daman Diu, Dadra, and Nagar Haveli, and Lakshadweep. The UTGST is governed by the UTGST Act.
   1. The revenue earned from UTGST is collected by the Union Territory government. The UTGST is a replacement for the SGST in Union Territories. Thus, the UTGST will be levied in addition to the CGST in Union Territories.

Difference Between Types of GST

The following is the list of difference between the types of GST: 

Types of GST Tax

The following are the main types of GST which depends on the following type of transaction:

Inter-State Transactions under GST

1. This transaction takes place within two different states where the GST is divided between the Central government and the state consuming the goods or utilising the service.

Intra-State Transactions under GST

1. Transaction carried out within the state is known as intra-state transaction where the GST is divided between the central government and the state within which the transaction happens.

Application of Different Types of GST

The following is the list of applications of different types of GST:

Taxes Replaced by GST

The implementation of the Goods and Services Tax (GST) replaced a number of taxes of both the state and the centre. The levies that were replaced are listed below:

1. Value Added Tax (VAT) or Sales Tax
2. Octroi
3. Entertainment Tax
4. Tax on Lottery or Betting or Gambling
5. Purchase Tax
6. Luxury Tax

1. Service Tax
2. Additional Excise Duty

1. Central Excise Duty and so on