There are 3 applicable taxes under GST: CGST, SGST & IGST.
- CGST: Collected by the Central Government on an intra-state sale (Eg: Within Karnataka)
- SGST: Collected by the State Government on an intra-state sale (Eg: Within Karnataka)
- IGST: Collected by the Central Government for inter-state sale (Eg: Karnataka to Tamil Nadu)
In most cases, the tax structure under the new regime will be as follows:
| Transaction | New Regime | Old Regime | ||||||||||||||||||||||
| Sale within the State | CGST + SGST | VAT + Central Excise/Service tax | Revenue will be shared equally between the Centre and the State | |||||||||||||||||||||
| Sale to another State | IGST | Central Sales Tax + Excise/Service Tax | There will only be one type of tax (central) in case of inter-state sales. The Center will then share the IGST revenue based on the destination of goods. |
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