GST Administration

♤ Keeping in mind the federal structure of India, there are two components of GST – Central GST (CGST) and State GST (SGST).

♤ Both Centre and States simultaneously levy GST across the value chain. The Tax is levied on every supply of goods and services.

♤ Centre levies and collect Central Goods and Services Tax (CGST), and States levy and collect the State Goods and Services Tax (SGST) on all transactions within a State.

♤ The input tax credit of CGST is available for discharging the CGST liability on the output at each stage. Similarly, the credit of SGST paid on inputs is allowed for paying the SGST on output.

♤ No cross utilization of credit is permitted.

♤ In addition to this, the Centre levies and collects the Integrated Goods and Services Tax (IGST) on all inter-State supplies of goods and services under Article 269A (1) of the Constitution in case of inter-State transactions.