What is CGST? Give an example. - Vidyadip

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What is CGST? Give an example.

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Answer

These taxes are levied on intra-state sales, i.e. within the same state. For example, a dealer of Rajasthan sells goods to a dealer (or consumer) in Rajasthan worth 50,000. Suppose, the GST rate on the goods is 12%. This rate will comprise of CGST at 6% and SGST at 6%. The seller has to collect 12% of ₹ 50,000 i.e. ₹ 36,000 out of which ₹ 3,000 will be CGST which will go to the Central Government and ₹ 33,000 will be SGST which will go to the Rajasthan Government.

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