Quick Answer: What Is IGST CGST And SGST With Example?

What is IGST in GST with example?

IGST is a part of Goods and Service Tax (GST).

IGST means Integrated Goods and Service Tax, one of the three categories under Goods and Service Tax (CGST, IGST and SGST) with a concept of one tax one nation.

For example, if goods are moved from Tamil Nadu to Kerala, IGST is levied on such goods..

What are the 3 types of GST?

Know about the types of GST in IndiaHighlights.CGST, SGST and IGST are the 3 types of GST in India.CGST and SGST are levied on intra-state transactions.CGST is collected by the centre and SGST by the state.IGST is charged on inter-state goods/services transactions.

What are the features of IGST?

Salient features of IGST Act 2017Continuance of uninterrupted ITC chain on inter-State transactions.No requirement to pay tax upfront or substantial blockage of funds for the inter-State seller or buyer.No claim of refund of taxes paid in exporting State, as ITC is used up while paying the tax.Self-monitoring model.More items…•

Can CGST and SGST be used to pay IGST?

CGST: The CGST input tax credit cannot be used to pay the SGST liability but can be used to pay the liability under CGST. Further, the balance of CGST credit available can be used to pay the IGST liability. … Further, the balance of SGST credit available can be used to pay the IGST liability.

What is rate of tax of IGST?

The GST rate is 18% comprised of 18% IGST. In such case, the dealer has to charge Rs. 18,000 as IGST. This IGST will go to the Centre.

What is difference between IGST and Cgst?

The GST to be levied by the Centre on intra state supply of goods and / or services is Central GST (CGST) and that by the States is State GST (SGST). On supply of goods and services outside the state, Integrated GST (IGST) will be collected by Centre. IGST also applies on imports as well.

What if IGST is paid instead of CGST and SGST?

Ideally, for an intra-state supply, the tax collected should be CGST/SGST instead of IGST. To rectify the situation, the person concerned will have to pay CGST/SGST and get the refund of the amount paid as IGST. Note: No interest will need to be paid when the taxpayer pays the correct tax later on.

How do I convert IGST to Cgst?

How to file form PMT-09 on gst portal ?Step 1: Log in to the GST Portal.Step 2: Select Services>Ledger>Electronic cash ledger. The page below will be displayed:Step 3: Select ‘File GST PMT-09 for transfer of amount’. The screen below will be displayed.

How is IGST calculated?

Intra state means within the same state. For example, the Movement of goods from Delhi and within Delhi will attract CGST and SGST. Integrated Goods and Service Tax or IGST numerically equals= CGST+SGST. Movement of goods from New Delhi to Agra will attract IGST.

Can we adjust SGST with Cgst?

CGST and SGST Cannot be Adjusted Against Each Other CGST credit cannot be adjusted against SGST Payable. Similarly, SGST Credit cannot be adjusted CGST Payable.

What is set off in GST?

The GST portal allows taxpayers to manually set off the input tax credit against the output liabilities. … The easiest way to accomplish this is after using the IGST credits for the IGST liability, the balance available in IGST credits to be equally utilised for CGST/SGST credits.

How do I claim back IGST wrongly paid?

Here is a Step by Step Guide to File RFD – 01 on GST Portal:Step 1: Login to the GST portal.Step 2: Go to ‘Services’ > ‘Refunds’ > ‘Application for Refund’Step 3: Select ‘Refund of Excess Balance in Electronic Cash Ledger’ and click on ‘CREATE’.More items…•

What is CGST and SGST and IGST?

IGST, CGST, and SGST are categories of Goods and Service Tax. IGST applies to interstate transactions and CGST and SGST to intrastate transactions. IGST is collected together and distributed to the Central and State Governments. SGST and CGST are collected directly by the Central and State Governments.

How do you convert IGST to CGST and SGST?

that is available in the electronic cash ledger, to the appropriate tax or cess head under IGST, CGST and SGST in the electronic cash ledger. Hence, if a taxpayer has wrongly paid CGST instead of SGST, he can now rectify the same using Form PMT-09 by reallocating the amount from the CGST head to the SGST head.

Who has to pay GST buyer or seller?

The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services.