GST consists of three main components – CGST, SGST, and IGST.
- CGST- The central government levies the Central Goods and Services Tax, or CGST on interstate goods and services transactions.
- SGST- The State Government collects the State Goods and Services Tax, or SGST on interstate goods and service transactions. SGST may also comprise previously levied taxes such as VAT, Octroi, purchase tax, luxury tax, etc.
- IGST – Interstate supplies of goods and services (both imports and exports) are subject to the IGST or Integrated Goods and Services Tax. The revenue collected from this tax is distributed between the state and central governments.
- UTGST- The transactions of goods and services within Union Territories in India fall under the Union Territory Goods and Services Tax or UTGST instead of SGST. The territories include the Andaman and Nicobar Islands, Lakshadweep, Chandigarh, Dadra, Daman Diu, and Nagar Haveli.
