GST

• A nationwide tax reform can't work without strict rules guidelines and provisions. The GST Council has formulated a foolproof method of implementing this new tax regime by dividing it into three categories i.e. CGST, SGST, and IGST. All three are explained below for the better understanding.

CGST: The revenue will be collected by the central government.

SGST: The revenue will be collected by the state governments for intra-state deals.

IGST: The revenue will be collected by the central government for inter-state sales.

• In most cases, the tax structure under the GST regime will be as follows:

1. For transaction or sale within the state, both the CGST and SGST will be levied, and the revenue will be shared between the Central and the State governments.

2. For transaction or sale to another State, IGST will be levied, i.e now only one type of tax needed to be paid for inter-state sales. This will remove the complex tax structure prevailing at the moment for all the interstate sales i.e. Central Sales Tax + Excise/Service Tax.