Thursday, 3 August 2017

Lok Sabha passes bills to extend GST to Jammu and Kashmir…




The first bill provides for the extension of the Central Goods and Services Tax Act,2017 to Jammu and Kashmir and the other provides for the extension of the Integrated Goods and Services Tax IGST Act,2017 to the State.

The two bills replace an order promulgated by the President.

The first bill provides for the extension of the Central Goods and Services Tax Act,2017 to Jammu and Kashmir and the other provides for the extension of the Integrated Goods and Services Tax IGST Act,2017 to the State. 

What is CGST, SGST or IGST ?
Central GST:
Central GST is the component of GST that will be levied by the central government on all items, both goods and services. It only applies to intra-state trade. A dealer can use input tax credit of CGST against CGST or IGST.

State GST:
State GST is the component of GST that will be levied by the state government on all items, both goods and services. It only applies to intra-state trade. A dealer can use input tax credit of SGST against SGST or IGST.

Integrated GST:
Integrated GST is the component of GST that will be levied by the central government in case of inter-state trade. It is applicable on all items, both goods and services. A dealer can use input tax credit of IGST against SGST, CGST or IGST.


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