CGST

CGST (Central Goods and Services Tax) is a component of the Goods and Services Tax (GST) in India.

Key Features:

• Levied by the Central Government: CGST is levied and collected by the Central Government.
• Applicable on Intra-State Supplies: CGST is applicable on intra-state supplies (i.e., supplies within the same state).
• CGST Act, 2017: The CGST Act, 2017, governs the provisions related to CGST.

CGST Rates:

• Nil Rate: 0% CGST rate applies to essential items like food grains, healthcare services, etc.
• 5% Rate: 5% CGST rate applies to items like spices, tea, coffee, etc.
• 12% Rate: 12% CGST rate applies to items like processed food, footwear, etc.
• 18% Rate: 18% CGST rate applies to items like soaps, detergents, etc.
• 28% Rate: 28% CGST rate applies to luxury items like cars, tobacco products, etc.

CGST Exemptions:

• Exemptions for Small Businesses: Businesses with a turnover of up to ₹40 lakhs are exempt from CGST.
• Exemptions for Specific Goods and Services: Certain goods and services like healthcare services, educational services, etc., are exempt from CGST.

CGST Returns:

• GSTR-1: Suppliers need to file GSTR-1 return for outward supplies.
• GSTR-3B: Suppliers need to file GSTR-3B return for a summary of outward supplies and tax liability.
• GSTR-9: Suppliers need to file GSTR-9 return for the annual return.

CGST Payment:

• Electronic Payment: CGST payment can be made electronically through the GST portal.
• Payment through Bank: CGST payment can also be made through authorized banks.