CGST Vs SGST

Many people are confused regarding CGST and SGST after coming of GST. So, today, I am explaining it very clearly on the basis of difference.

1. Full Form

CGST full form is central goods and service tax. SGST full form is state goods and service tax.

2.  Tax Collection Authority

CGST is tax which will deposit in the central Govt. Account. SGST is the tax which will deposit in State Govt. Bank account.

3. Example 

Mr. A is the dealer of Punjab sells the goods to Mr. B of Punjab of Rs. 2,00,000. Total GST is 18%. 9% Tax of 2,00,000 will be 18000 will be deposit in central govt. account. So, it will be CGST. 9% of Rs. 2,00,000 will be Rs. 18000 deposit in punjab state govt. account and  So, it will be SGST.

4. Input Credit 

If One goods are sold from one supplier to other supplier in same state. If same goods are sold to other state's customer. All tax will be deposited to Central Govt. ( from one state to other state sale). Now, it will be easy to Credit input from CGST which was sold same state because both tax fund is in the hand of Central Govt. But total SGST collected by state govt. will be transfer to Central Govt. as input credit and then Central Govt. will deduct State Govt. GST. Both Input Credit on CGST and SGST will be received the person who will sell it to next party. If he will claim Input Credit from Central Govt. by showing following documents

a)  Tax Invoice of Purchase
b) Supplier has filed GST return
c) Tax charged on your purchase

It will be adjusted with your total paid amount of GST. If your input credit is more than your paid tax, you will get refund of GST.

5. Merging Taxes 

All the Central Excise Duty, Central Sales Tax, Service Tax, Additional excise duties will be under central goods and service tax (CGST)

State Sales Tax and  VAT has merged under SGST.

Related Resources :

• What is GST?
• Journal Entries of GST