Goods and Service Tax (GST) is the biggest indirect Tax passed on 29th March 2017 in the parliament under the Goods and Service Tax Act. This on Tax replaced almost all other indirect tax laws that previously existed in India. Now it is one tax for the entire Country.
Under the GST regime, the tax is levied at every point of sale. In the case, if intrastate sales, Central GST and Ste GST are charged. Intra State Sales are chargeable to integrated GST. There are three different types of taxes applied under this system CGST, SGST, and IGST.
CGST is for intrastate sale collected by the central government on an intra-sate sale. SGST is collected by the State Government for intrastate and finally, IGST which is collected by the central Government of Inter-State Sales.
One of the most reasons to introduce GST in India is to integrate almost all taxes with a single one. Here Centre and Ste would divide the taxes based on their preapproved formula.