GST was implemented mainly to bring about uniformity in tax collection. In the GST regime, tax is collected cumulatively
at the end stage of production of goods or services. There are
five slabs to collect GST that are 0%, 5%, 12%, 18% and
28%, and different goods and services fall under different tax slabs. Additionally, there are goods that do not attract
any GST. Read about them
here.
There are four types of GST active in India. They are:
CGST - Central Goods and Services Tax, or CGST is collected by the central government for intra-state supply of goods
and services and is governed by the CGST act. CGST is charged along with SGST with both rates usually equal.
SGST - State Goods and Services Tax, or SGST is collected by the state government for intra-state supply of goods and
services and is governed by the SGST act. SGST is charged along with CGST with both rates usually equal.
IGST - Integrated Goods and Services Tax, or IGST is collected by the central government on inter-state supply of goods
and services as well as imports. The central government collects the IGST and then distributes it among the respective
states.
UTGST - Union Territory Goods and Services Tax, or UTGST is applicable on supply of goods or services that take place in
any of the seven union territories in India. The UTGST is collected along with the CGST.