SGST, CGST & IGST Applicability with Examples
In case the supply of goods or services is done INTRA STATE (LOCALLY) i.e. the place of consumption rules provide that local GST needs to be applied for the transaction, then the supplier would charge dual GST i.e. SGST and CGST at specified rates on the supply.
Ex.
Basic value charged for supply of goods or services 10,000
Add: CGST @8% 800
Add: SGST @8% 800
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Total price charged for local supply of goods or services 11,600
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In case the supply of goods or services is done INTER STATE i.e. the place of consumption rules provide that interstate GST (or integrated GST) needs to be applied for the transaction, then the supplier would charge IGST at specified rates on the supply.
Ex.
Basic value charged for supply of goods or services 10,000
Add: IGST @16% 1,600
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Total price charged for local supply of goods or services 11,600
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