Interstate And Intrastate GST

Earlier there used to have multiple taxes such as VAT, Excise duty, Service tax, etc.           

But after implementing GST the government has eradicated the complex taxation system with a simple one tax. 

GST is an indirect tax that is levied on goods and services. AND

Depending upon the supply of goods and services the GST is categorized into CGST, SGST IGST.

If the supply of goods and services are made across the states, then it is termed interstate GST. In such a case, only IGST has to be paid. IGST stands for integrated goods and service tax, which is collected by the central government.

If the supply of goods and services is made within the state, then it is termed as intrastate GST. In such a case, both CGST and SGST have to pay. CGST stands for central good and service tax, which is collected by the central government. SGST stands for state good and service tax, which is collected by the state government.

Supply of goods and services to the special economic zone (SEZ) and Exports are classified under IGST only.

For example, if ABC Limited from Gujarat is selling its goods worth Rs. 10000 to XYZ Limited in Gujarat and XYZ Limited is selling those goods to Maharashtra. Suppose the tax rate applicable is 18%.  Since ABC is selling within the state, it is an intrastate sale, so CGST@9% AND SGST@9% will apply.

XYZ Limited is further selling it to Maharashtra, which is an interstate supply, so IGST@18% will apply.

With the introduction of GST, the government had made compulsory the GST invoicing and E-way bills. GST invoice is issued by the supplier to the buyer of goods. Eway bills are generated electronically for the movement of goods from the seller to the buyer for both intrastate and interstate. Before GST to obtain a way-bill was a task. But after implementing the GST to obtain a way-bill become simpler and now the way-bill is known as electronic way-bills or E-way bills.

Thus we here at Settlemytax with our expert team to help the business to file GST registration, GST returns filing, GST Audit, and other GST-related services. SMT’S specialization and outstanding experience will ease the problems related to the GST.