GST and Types of GST

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GST stands for Goods and Services Tax, a value-added tax levied on most goods and services sold for domestic consumption.

GST is a consumption tax that is levied on the supply of goods and services in India.
There are three types of GST in India: CGST (Central Goods and Services Tax), SGST (State Goods and Services Tax), and IGST (Integrated Goods and Services Tax).
CGST is collected by the Central Government, SGST is collected by the State Government, and IGST is collected by the Central Government for inter-state transactions.
GST has replaced many indirect taxes in India such as excise duty, service tax, and VAT.
GST has helped in simplifying the tax structure and reducing tax evasion.
Example: If a product is sold within the same state, both CGST and SGST will be applicable. If a product is sold from one state to another, IGST will be applicable.

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