CGST stands for Central GST and SGST stands for State GST and IGST stands for Integrated GST.
Government recently notified standard GST rate of 18% which would be levied on goods & services which are taxable, let us understand what does it got to do with CGST & SGST.
If some one will issue an invoice of any service or goods then if the sale is Intra-state (i.e. within same state) then he will charge GST of 18% which will comprise of CGST & SGST both of 9% that means 9% belongs to state government and 9% belongs to central government.
Further if sale made is Inter state (i.e. state other than from where supply is made) GST charged at 18% in invoice will be IGST.
Note: Rate of 18% may vary as per notification of central government in this regard.
Now how can credit be utilized in each case:-
Below mention table sums up the utilization rule as per Model GST law-
|Input tax Paid||Dischargeable Tax|
||CGST & IGST|
||SGST & IGST|
||CGST, SGST & IGST|
Articled Clerk Tarun
RPL & Co.