Components, comparison and applicability
India has adopted a Dual GST Model under which tax is levied simultaneously by both Central and State government on taxable supplies which takes place within State or Union Territory. On inter-state supplies, tax levied by Central Government.
| Central GST – CGST | State GST – SGST | Integrated GST – IGST | |
|---|---|---|---|
| Tax Levied By | Central Government, on Intra-State supplies of Goods and/or services | State Government, on Intra-State supplies of Goods and/or services | Central Government, on Inter-State supplies of Goods and/or services |
| Taxes that it will replace | Service tax, excise duty, countervailing duty (CVD), special additional duty (SAD), Additional duties of excise(ADE), and any other indirect central levy | VAT, sales tax, luxury tax, entry tax ,entertainment tax, purchase tax, Octroi, taxes on lottery | Central sales tax (CST) |
| Applicability | Supplies within a state | Supplies within a state | Interstate supplies and import |
| Input Tax Credit | Against CGST and IGST | Against SGST and IGST | Against CGST,SGST and IGST |
| Tax Revenue Sharing | Central government | State government | Shared between state and central governments |
| Free Supplies | CGST is applicable on free supplies | SGST is applicable on free supplies | IGST is applicable on free supplies |
The above table explains the difference between the types of GST, which form the part of GST as a whole.