{"id":13072,"date":"2018-07-02T14:10:35","date_gmt":"2018-07-02T14:10:35","guid":{"rendered":"https:\/\/www.tradefinanceglobal.com\/?page_id=13072"},"modified":"2024-08-22T09:56:40","modified_gmt":"2024-08-22T09:56:40","slug":"what-is-igst-sgst-and-cgst","status":"publish","type":"page","link":"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/what-is-igst-sgst-and-cgst\/","title":{"rendered":"What is IGST, CGST and SGST?"},"content":{"rendered":"\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-header-without-image d-flex flex-direction-column justify-content-center\">\n    <h2 class=\"fs-32 fw-700 fs-xs-28 not-for-table-content\" id=\"heading-what-is-igst-cgst-and-sgst\">\n        What is IGST, CGST and SGST?    <\/h2>\n    <div class=\"d-grid grid-col-2 grid-col-xs-1\">\n                            <div class=\"\">\n                <div>Last updated on 22 Aug 2024<\/div>\n                <div>02 Jul 2018 . 3 min read<\/div>\n            <\/div>\n            <\/div>\n    <\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\"><figure class=\"wp-block-post-featured-image\"><img loading=\"lazy\" decoding=\"async\" width=\"869\" height=\"352\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/What-is-IGST-CGST-and-SGST.jpg\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"\" style=\"object-fit:cover;\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/What-is-IGST-CGST-and-SGST.jpg 869w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/What-is-IGST-CGST-and-SGST-300x122.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/What-is-IGST-CGST-and-SGST-768x311.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/What-is-IGST-CGST-and-SGST-320x130.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/What-is-IGST-CGST-and-SGST-370x150.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/What-is-IGST-CGST-and-SGST-414x168.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/What-is-IGST-CGST-and-SGST-600x243.jpg 600w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/What-is-IGST-CGST-and-SGST-372x151.jpg 372w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/What-is-IGST-CGST-and-SGST-450x182.jpg 450w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/What-is-IGST-CGST-and-SGST-380x154.jpg 380w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/What-is-IGST-CGST-and-SGST-285x115.jpg 285w\" sizes=\"auto, (max-width: 869px) 100vw, 869px\" \/><\/figure><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #f2f5f7 !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-most-popular\">Most Popular<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/\">\n        Introduction to Freight Forwarding      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/difference-between-igm-bill-of-entry\/\">\n        Import General Manifest (IGM) &#038; a Bill of Entry      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/fcl-full-container-load-versus-lcl\/\">\n        Full Container Loads vs Less than Container Loads      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/inbound-logistics-definition\/\">\n        Inbound Logistics      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/incoterms\/\">\n        Incoterms\u00ae 2020 Rules      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<div class=\"wp-block-columns country-quick-link is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #ebf5f4 !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-modes-of-transport\">Modes of Transport<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/air-freight\/\">\n        Air Freight      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/container-shipping\/\">\n        Container Shipping      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/ocean-freight\/\">\n        Ocean Freight      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/air-cargo-manifest\/\">\n        Air Cargo Manifest      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #e5f5ff !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-documentation-processes\">Documentation &#038; Processes<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/bill-of-lading-bl-bol\/\">\n        Bill of Lading (BL)      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/demurrage\/\">\n        Demurrage      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/telex-release\/\">\n        Telex Releases      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/reefer-containers\/\">\n        Reefer Containers      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/what-is-igst-sgst-and-cgst\/\">\n        IGST, SGST &amp; CGST      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/marine-insurance\/\">\n        Marine Insurance      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #E6FAFE !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-logistics-management\">Logistics Management<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/what-is-cfs\/\">\n        Container Freight Stations      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/what-is-cy-cy\/\">\n        Container Yards (CY)      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/dsv-tracking\/\">\n        DSV Tracking      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/shipping-management-software\/\">\n        Shipping Management Software      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/explained-port-and-starboard\/\">\n        Port &amp; Starboard      <\/a>\n      <\/div>\n<\/div><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"bg-light-blue d-flex gap-16 h-auto p-16 rounded xs-flex-direction-column\">\n    <div class=\"\">\n    <img decoding=\"async\" style=\"min-width:100px;max-width: 150px\" src=\"https:\/\/secure.gravatar.com\/avatar\/e76723ef35540b976c89c84418177c23?s=160&#038;d=mm&#038;r=g\" class=\"w-100 rounded\">\n  <\/div>\n  <div class=\"col-span-2 col-span-xs-1\">\n    <div class=\"d-flex flex-direction-column gap-16 fs-16 justify-content-between\">\n      <div class=\"fs-16 fw-700\">Brian Canup<\/div>\n      <div class=\"fs-14 fw-400 elipsise-2-line\" title=\"Brian Canup is a former Editorial &amp; Research Assistant at Trade Finance Global (TFG). He graduated with an MA in International Political Economy from King's College London, and a BA in Political Science from the University of Wisconsin-Madison.\">\n        Brian Canup is a former Editorial &amp; Research Assistant at Trade Finance Global (TFG). He graduated with an MA in International Political Economy from King&#8217;s College London, and a BA in Political Science from the University of Wisconsin-Madison.      <\/div>\n      <div>\n        <a class=\"text-black fs-12 small-link-arrow-right\" href=\"https:\/\/www.tradefinanceglobal.com\/posts\/?author=491\">\n          <span>\n            Latest Post          <\/span>\n        <\/a>\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n<div style=\"min-height:100px!important;\" class=\"block-cta max-w-100 p-32 h-auto rounded sm-w-60 dark-mode bg-black align wp-block-acf-block-cta\">\n  <h4 id=\"heading-access-trade-receivables-and-supply-chain-finance\" class=\"fs-24 fw-700 elipsise-2-line dark:color-white not-for-table-content\">\n    Access trade, receivables and supply chain finance  <\/h4>\n  <p class=\"block-subtitle dark:color-white\">We assist companies to access trade and receivables finance through our relationships with 270+ banks, funds and alternative finance houses.<\/p>\n  <a href=\"https:\/\/www.tradefinanceglobal.com\/get-trade-finance\/\" class=\"dark:text-black px-16 py-8 rounded bg-black text-white fs-14 fw-700 dark:bg-tale\">\n    <span>Get Started<\/span>\n  <\/a>\n<\/div>\n\n\n<p><\/p>\n\n\n<div class=\"block-cta p-24 h-auto rounded\">\n    <h4 id=\"heading-\" class=\"fs-24 fw-700 elipsise-2-line dark:color-white not-for-table-content\">\n      <\/h4>\n  <p class=\"fs-16 fw-400 dark:color-white\">Download the incoterms guide<\/p>\n  <div class=\"mb-20\">\n    <img loading='lazy' alt='Short-Incoterms-Guide-724&#215;1024' style='width:auto; height:200px'  width='auto' height='auto' src='https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Short-Incoterms-Guide-724x1024-1-150x150.jpg' srcset='https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Short-Incoterms-Guide-724x1024-1-212x300.jpg 212w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Short-Incoterms-Guide-724x1024-1-320x453.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Short-Incoterms-Guide-724x1024-1-370x523.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Short-Incoterms-Guide-724x1024-1-414x586.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Short-Incoterms-Guide-724x1024-1-141x200.jpg 141w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Short-Incoterms-Guide-724x1024-1-177x250.jpg 177w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Short-Incoterms-Guide-724x1024-1-115x162.jpg 115w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Short-Incoterms-Guide-724x1024-1-112x159.jpg 112w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Short-Incoterms-Guide-724x1024-1-87x123.jpg 87w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Short-Incoterms-Guide-724x1024-1-134x190.jpg 134w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Short-Incoterms-Guide-724x1024-1.jpg 724w' \/>  <\/div>\n      <a href=\"https:\/\/www.tradefinanceglobal.com\/login\/?redirect_url=https%3A%2F%2Fwww.tradefinanceglobal.com%2Fwp-json%2Fwp%2Fv2%2Fpages%2F13072\"  class=\"dark:text-black px-16 py-8 rounded bg-black text-white fs-14 fw-700 dark:bg-tale\">\n      <span>Download<\/span>\n    <\/a>\n    <\/div>\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-contents\">Contents<\/h2>\n\n\n<div class=\"block-table-content h-auto bg-white auto\">\n    <ul class=\"table-content\"><\/ul><\/div>\n\n\n<p><\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<p class=\"bg-tale rounded p-24 h-auto\" style=\"font-size:16px\">The Goods and Service Tax (GST) is a term signifying one tax, one nation policy. An end-user that consumes any good(s) or service(s) pays the GST. We get the concepts of IGST, SGST and CGST when we observe the ways in which GST removes the cascading effect of taxes.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">These terms have the following meanings:<\/p>\n\n\n<div class=\"block-three-columns\">\n  <div class=\"container w-auto\">\n    <div class=\"d-grid grid-col-3 grid-col-xs-1 gap-32\">\n              <div class=\"bg-tale rounded p-24 d-flex flex-direction-column justify-content-between\" style=\"background-color: #EBF5F4 !important\">\n                      <h4 class=\"fs-20 fw-600 elipsise-2-line not-for-table-content\" title=\"IGST\">\n              IGST            <\/h4>\n                    <div class=\"fs-16\"><p>Integrated goods and service tax<\/p>\n<\/div>\n                  <\/div>\n              <div class=\"bg-tale rounded p-24 d-flex flex-direction-column justify-content-between\" style=\"background-color: #EBF5F4 !important\">\n                      <h4 class=\"fs-20 fw-600 elipsise-2-line not-for-table-content\" title=\"SGST\">\n              SGST            <\/h4>\n                    <div class=\"fs-16\"><p>State goods and services tax<\/p>\n<\/div>\n                  <\/div>\n              <div class=\"bg-tale rounded p-24 d-flex flex-direction-column justify-content-between\" style=\"background-color: #EBF5F4 !important\">\n                      <h4 class=\"fs-20 fw-600 elipsise-2-line not-for-table-content\" title=\"CGST\">\n              CGST            <\/h4>\n                    <div class=\"fs-16\"><p>Central goods and services tax.<\/p>\n<\/div>\n                  <\/div>\n          <\/div>\n  <\/div>\n<\/div>\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"taxes\">GST replaces which taxes?<\/h2>\n\n\n\n<p style=\"font-size:16px\">Before the introduction of&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/what-is-gst-bill-of-entry\/\">GST<\/a>, there were multiple taxes, such as the service tax, central excise, and state value-added tax (VAT). However, GST is just one tax with three categories\u2014IGST, SGST, and CGST\u2014that depend on whether the performed transaction is intrastate or interstate.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img decoding=\"async\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/How-is-GST-split-into-state-and-central-tax-Infographic.jpg\" alt=\"\" class=\"wp-image-106322\" width=\"1200\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/How-is-GST-split-into-state-and-central-tax-Infographic.jpg 512w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/How-is-GST-split-into-state-and-central-tax-Infographic-120x300.jpg 120w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/How-is-GST-split-into-state-and-central-tax-Infographic-410x1024.jpg 410w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/How-is-GST-split-into-state-and-central-tax-Infographic-320x800.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/How-is-GST-split-into-state-and-central-tax-Infographic-370x925.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/How-is-GST-split-into-state-and-central-tax-Infographic-414x1035.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/How-is-GST-split-into-state-and-central-tax-Infographic-80x200.jpg 80w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/How-is-GST-split-into-state-and-central-tax-Infographic-100x250.jpg 100w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/How-is-GST-split-into-state-and-central-tax-Infographic-65x162.jpg 65w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/How-is-GST-split-into-state-and-central-tax-Infographic-64x159.jpg 64w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/How-is-GST-split-into-state-and-central-tax-Infographic-49x123.jpg 49w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/How-is-GST-split-into-state-and-central-tax-Infographic-76x190.jpg 76w\" sizes=\"(max-width: 512px) 100vw, 512px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"category\">What determines which category of GST is applicable?<\/h2>\n\n\n\n<p style=\"font-size:16px\">We need to understand whether the transaction is an intrastate or an interstate supply of goods and services to determine which category of GST is applicable.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li style=\"font-size:16px\"><strong>Intrastate supply (SGST and CGST)<\/strong><\/li>\n<\/ul>\n\n\n\n<p style=\"font-size:16px\">This arises when the place of supply (buyer), as well as the location of the supplier (seller), happen to be in the same state. In this case, a seller must collect both State Goods and Services Tax (SGST) and Central Goods and Services Tax (CGST) from the buyer \u2014here, the SGST gets deposited with the state government, and CGST gets deposited with the central government.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li style=\"font-size:16px\"><strong>Interstate supply (IGST)<\/strong><\/li>\n<\/ul>\n\n\n\n<p style=\"font-size:16px\">This arises when the place of the supply (buyer), as well as the location of the supplier (seller), are in different states. Another scenario that counts as interstate supply is in cases of the import or export of goods and services, or when the goods and services are supplied to\u2014or by\u2014the SEZ unit. If the transaction is inter-state, then the seller collects Integrated Goods and Services Tax (IGST) from the buyer.<\/p>\n\n\n\n<p style=\"font-size:16px\">Now that we know where each category of GST is applicable, let\u2019s explain them.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"IGST\">What is the Integrated Goods and Services Tax (IGST)?<\/h2>\n\n\n\n<p style=\"font-size:16px\">IGST is the category of GST that involves taxes levied on all interstate supplies of goods and services. The tax is shared between the central and state governments, and the exports are zero-rated.<\/p>\n\n\n\n<p style=\"font-size:16px\">The GST act governs Integrated Goods and Services Tax levies.<\/p>\n\n\n\n<p style=\"font-size:16px\">Under the GST regime, an Integrated GST (IGST) is levied and collected by the Centre on Inter-State supply of goods and services. Under Article 269A of the Constitution, the GST on supplies in the course of interstate trade or commerce shall be levied and collected by the Indian Government, and such tax shall be apportioned between the union and the states in the manner as may be provided by Parliament by law on the recommendations of the Goods and Services Tax Council.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"SGST\">What is the State Goods and Services Tax (SGST)?<\/h2>\n\n\n\n<p style=\"font-size:16px\">SGST is the other category of GST that is levied on intrastate supplies of goods and services by the state government. The SGST Act of each country governs levies of this tax.<\/p>\n\n\n\n<p style=\"font-size:16px\">For the State Goods and Services Tax to be introduced, some taxes must be subsumed into it. Some of them include VAT, state sales tax, entertained tax (only when the local bodies do not levy it), luxury tax, entry tax (not in lieu of Octroi), taxes on lottery, gambling, and betting, and state cesses and surcharges (if they relate to supply of goods and services).<\/p>\n\n\n\n<p style=\"font-size:16px\">Under SGST, if there is any tax liability, it can only be set off against SGST or IGST input tax credits.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"CGST\">What is the Central Goods and Services Tax (CGST)?<\/h2>\n\n\n\n<p style=\"font-size:16px\">CGST is the final category of GST. It\u2019s a tax levied on intrastate supplies of goods and services by the central government, and it is governed by the CGST Act. Since SGST falls under intrastate supply, it is levied in the same way, but it is now regulated by the state government.<\/p>\n\n\n\n<p style=\"font-size:16px\">For the Central Goods and Services Tax to be introduced, some taxes must be subsumed. They include central sales tax (CST), additional customs duty\u2014countervailing duty (CAD), central excise duty, service tax, special additional duty of customs (SAD), and surcharges and cesses.<\/p>\n\n\n\n<p style=\"font-size:16px\">So, what does this mean? It means that both the central and state governments will come to an agreement that sees them combine their levies in an appropriate proportion aimed at revenue sharing between them.<\/p>\n\n\n\n<p style=\"font-size:16px\">Section 8 of the GST Act mentions that taxes are levied on all intrastate supplies of goods and\/or services. However, the rate should not surpass 14% each.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img decoding=\"async\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/What-is-GST-Government-State-Tax-Infographic.jpg\" alt=\"\" class=\"wp-image-106324\" width=\"1200\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/What-is-GST-Government-State-Tax-Infographic.jpg 512w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/What-is-GST-Government-State-Tax-Infographic-120x300.jpg 120w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/What-is-GST-Government-State-Tax-Infographic-410x1024.jpg 410w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/What-is-GST-Government-State-Tax-Infographic-320x800.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/What-is-GST-Government-State-Tax-Infographic-370x925.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/What-is-GST-Government-State-Tax-Infographic-414x1035.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/What-is-GST-Government-State-Tax-Infographic-80x200.jpg 80w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/What-is-GST-Government-State-Tax-Infographic-100x250.jpg 100w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/What-is-GST-Government-State-Tax-Infographic-65x162.jpg 65w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/What-is-GST-Government-State-Tax-Infographic-64x159.jpg 64w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/What-is-GST-Government-State-Tax-Infographic-49x123.jpg 49w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/What-is-GST-Government-State-Tax-Infographic-76x190.jpg 76w\" sizes=\"(max-width: 512px) 100vw, 512px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"why\">Why does the split of GST to IGST, SGST and CGST arise?<\/h2>\n\n\n\n<p style=\"font-size:16px\">The split of GST to IGST, SGST and CGST arise when both the central and state governments have the power to levy and collect taxes. It happens mostly when a country has a federal structure, and so both central and state governments have responsibilities to perform and need to raise taxes to carry out these duties. To ensure the one nation, one tax policy, the central and state governments must levy GST.<\/p>\n\n\n\n<p class=\"bg-anti-flash-white rounded p-24 h-auto\" style=\"font-size:16px\">Get in touch with our Freight Forwarding networking team&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/contact-us\/\">here<\/a><\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-testimonials\">Testimonials<\/h2>\n\n\n<div class=\"block-content align bg-anti-flash-white rounded p-24 h-auto fs-16 wp-block-acf-block-content\"style=\"background-color: ;color: #002F4D;\"\n>\n    <p>A business owner Dipesh from Rajastan\u00a0had sold his finished goods to Jyoti from Gujarat worth a total value of Rs. 10,00,000. The GST rate is 18%, which is split into a total of 18% of IGST. In this case, the dealer must charge Rs. 180,000 as IGST, which will go to the Centre.<\/p>\n<p>&nbsp;<\/p>\n<p>\u2013 Dipesh B, Goods Manufacturer<\/p>\n<\/div>\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column bg-tale rounded p-24 h-auto is-layout-flow wp-block-column-is-layout-flow\">\n<h3 class=\"wp-block-heading\"><strong>Case Study<\/strong><\/h3>\n\n\n<div class=\"block-content align bg-white rounded p-24 h-auto wp-block-acf-block-content\"style=\"background-color: #FFFFFF;color: #002F4D;\"\n>\n    <p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-105880 size-full aligncenter\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics.jpg\" alt=\"\" width=\"960\" height=\"720\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics.jpg 960w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics-300x225.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics-768x576.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics-320x240.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics-370x278.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics-414x311.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics-400x300.jpg 400w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics-267x200.jpg 267w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics-333x250.jpg 333w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics-216x162.jpg 216w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics-212x159.jpg 212w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics-164x123.jpg 164w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics-253x190.jpg 253w\" sizes=\"auto, (max-width: 960px) 100vw, 960px\" \/><\/p>\n<p>&nbsp;<\/p>\n<h4 class=\"member-role\" style=\"text-align: left;\">Goods Distributor<\/h4>\n<p>Trade Finance Global along with their partner freight forwarders and tax assistants helped us file our returns, arrange transportation and sort out our duties in India.<\/p>\n<\/div><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n<\/div>\n<\/div>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<section class=\"full-width block-grid_topics dark-mode\" data-block=\"grid_topics\" data-theme=\"dark\">\n  <div class=\"block-topics\">\n    <h1 class=\"container w-auto fs-xs-20 mb-xs-20 not-for-table-content\"><\/h1>\n    <div class=\"control container w-auto clearfix topic-tabs position-relative\">\n              <ul class=\"tabs tabs-horizontal d-inline-block mb-30\">\n                      <li class=\"px-24 py-12 fs-16 fs-xs-14 active\"\n            data-post-type=\"post\"\n            data-source=\"topic\"\n            data-limit=\"14\"\n            data-include=\"\"\n            data-cat=\"850,851,11052,3822\"\n            data-cat-relationship=\"in\"\n            data-key-category=\"\"\n            data-link=\"\"\n            data-link-title=\"\"\n            default-link=\"\"\n            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class=\"border-light-blue bordered options-to-select overflow-hidden rounded-md w-100 d-hidden\">\n          <span class=\"d-block py-10 px-16 pointer single-option\"\n          data-value=\"title-asc\">A-Z<\/span>\n          <span class=\"d-block py-10 px-16 pointer single-option\" data-value=\"date-desc\">Latest<\/span>\n        <\/div>\n      <\/div>\n    <\/div>\n\n    <div class=\"block-wrapper clearfix overflow-hidden max-w-100\">\n    <\/div>\n\n    <div class=\"bottom-buttons d-flex clearfix container w-auto\">\n      <a href=\"\" class=\"custom-link button-standart button-standart-blue\">\n        <span><\/span>\n      <\/a>\n    <\/div>\n  <\/div>\n<\/section>\n\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Goods and Service Tax (GST) is a term signifying one tax, one nation policy. An end-user that consumes any good(s) or service(s) pays the GST. We get the concepts\u2026 <a href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/what-is-igst-sgst-and-cgst\/\" class=\"read-more-link\">read more &rarr;<\/a><\/p>\n","protected":false},"author":491,"featured_media":113237,"parent":11166,"menu_order":3,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"content-type":"","ep_exclude_from_search":false,"footnotes":""},"categories":[],"class_list":["post-13072","page","type-page","status-publish","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v24.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is IGST, CGST and SGST? | Trade Finance Global<\/title>\n<meta name=\"description\" content=\"IGST, SGST and CGST are taxes under the GST regime. 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