Goods & Services Tax: Taxation System Overview
GST is consumption based tax levied on sale, manufacture and consumption of goods and services at national level. It is a destination based tax
The proposed tax system will take the form of dual GST concurrently levying on behalf of centre and state.
Tax Apportionment

•   In case of Intra State Transaction

Seller collects both CGST and SGST and deposits the same with centre & State govt respectively.

• In case of Inter State transaction

IGST is collected on transactions and transferred to importing state. It is proposed to levy additional tax not more than 1% by centre and assign to states where the supply originates.






•    Exports and supplies to SEZ units will be zero rated.

Credit Adjustments:
1.    IGST to be adjusted with IGST, then balance with CGST and then with SGST.






  2.CGST to be adjusted with CGST and balance with IGST












3.SGST to be adjusted with SGST and balance with IGST





4. Credit of SGST and CGST cannot be utilized interchangeably