On this blog we have already talked about GST – Introduction and Working and this article is based on Central Goods and Services Tax, which is one of the 3 categories under Goods and Services Tax (CGST, IGST and SGST) with a concept of one nation one tax.
It falls under the Central Goods and Services Tax Act, 2017.
It is levied on the Intra State movement of goods and services. The revenue collected under Central Goods and Services Tax is for the Central Government. However, Input Tax Credit on it is given partly to the Centre and partly to the States as it will be utilized against the payment of both CGST and IGST.
The above stated example shows how the taxes would be collected by both the centre and by the state. Both CGST and SGST will be applicable on a single transaction.
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