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GST stands for "Goods and Services Tax", and is proposed to be a comprehensive indirect tax to be levied on supply of GOODS & SERVICES. In INDIA Dual GST is proposed, hence there will be two components of GST to be levied by CENTRE & STATES. This dual GST model would be implemented through multiple statutes (one for CGST and SGST statute for every State). However, the basic features of law such as chargeability, definition of taxable event and taxable person, measure of levy including valuation provisions, basis of classification etc. would be uniform across these statutes as far as practicable. Presently GST by following three different name are proposed to be charged/levied under INDIAN GST.

(1) State Goods & Service Tax (SGST) :- SGST is proposed to be implemented through multiple statues by the states and union territories of INDIA.

(2) Central Goods & Service Tax (CGST):- CGST is proposed to be implemented through One statue by the Centre.

The SGST and CGST would be applicable to all transactions/supplies of goods and services made for a consideration except the exempted goods and services, goods which are outside the purview of GST and the transactions which are below the prescribed threshold limit. The Central GST and State GST are to be paid to the accounts of the Centre and the States separately. It would have to be ensured that account-heads for all services and goods would have indication whether it relates to Central GST or State GST (with identification of the State to whom the tax is to be credited). Since the Central GST and State GST are to be treated separately, taxes paid against the Central GST shall be allowed to be taken as input tax credit (ITC) for the Central GST and could be utilized only against the payment of Central GST. The same principle will be applicable for the State GST. A taxpayer or exporter would have to maintain separate details in books of account for utilization or refund of credit. Further, the rules for taking and utilization of credit for the Central GST and the State GST would be aligned.

Cross utilization of ITC between the Central GST and the State GST would not be allowed except in the case of inter-State supply of goods and services under the IGST model.

(3) Inter State Goods & Service Tax (IGST):- IGST is proposed to be levied on inter-State transaction of Goods and Services. The scope of IGST Model is that Centre would levy IGST which would be CGST plus SGST on all inter-State transactions of taxable goods and services with appropriate provision for consignment or stock transfer of goods and services.

The main objective of implementation of GST in INDIA is to consume all indirect tax levies into a single tax (Namely GST), except customs and excise on alcohol. Thus multiple Central and States tax levies will be replaced by Single GST. Another main adjective to allowed seamless flow of credit of input taxes during the entire manufacture/supply chain. And the main feature of GST is that it will be consumption based levy of Tax.

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