CGST

CGST is leived by the central government on intra-state goods and service transactions. The central government collects the revenue generated through Central Goods and Service Tax. It is levied along with SGST or UGST and revenues are shared between the state and the centre.

For example, if you are a Punjab-based dealer and are selling to a another dealer in Punjab, since it's an intra-state sale, both CGST and SGST will be applicable on this transaction. If your transaction of goods is worth Rs.30,000 and it attracts 18% GST, then 9%, which is Rs.2,700 of the tax amount, is collected as SGST by the state government and a matching amount is collected as CGST by the centre.

Features of CGST Act 2017, are as per the following:

• To levy a tax on all intra-State supplies of goods or/and services;

• To widen the base of the input tax credit by making it accessible in regard of taxes paid on the purchase or supply of goods or/and services utilized or proposed to be utilized in the course or furtherance of business;

• To impose an obligation to collect TCS by the e-com operators, at such rate not surpassing 1% of the net taxable supplies, out of payments made to providers providing goods or services through their portals;

• To accommodate self-evaluation of the taxes payable by the registered individual;

• To direct audit of registered people so as to confirm compliance with the provision of the Act;

• To accommodate recovery of arrears utilizing different modes including sale of goods, movable and immovable property of defaulting taxable individual;

• To accommodate the power of assessment, search, seizure, and detention to the tax officers;

• To set up the Goods and Services Tax Appellate Tribunal by the Central Government for hearing interests against the requests passed by the Appellate Authority or the Revisional Authority;

• To make arrangement for punishments for the contradiction of the provision of the proposed legislation; and

• To accommodate an anti-profiteering clause so as to guarantee that business passes on the advantage of the reduced tax rate on goods or/and services to the customers.