HISTORY OF GST IN INDIA
GST was introduced to replace multiple indirect taxes, which were existing under previous tax regime. This is a single tax rate for goods and service for whole of India. Tax compliance is also better as taxpayers are not bogged down with multiple return forms and deadlines for various states.
Now, the question arises what are the components of GST
There are three taxes applicable under GST. CGST, SGST & IGST.
CGST: It is the tax collected by the Central Government on an intra-state sale (e.g., a transaction happening within Delhi).
SGST: It is the tax collected by the State Government on an intra-state sale (e.g., a transaction happening within Delhi).
IGST: It is the tax collected by the Central Government on an inter-state sale (e.g., a transaction happening from Delhi to Maharashtra).
