BANKING AFFAIRS

Detailed explanation-1: -SGST is levied and collected by the states on all goods and services supplied for consideration. SGST is not applicable to the exempted goods and services as they do not come under the influence of GST. Furthermore, SGST is also not applicable where the aggregate annual turnover is less than the prescribed limit.

Detailed explanation-2: -Both Centre and States will simultaneously levy GST across the value chain. Tax will be levied on every supply of goods and services. Centre would levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State.

Detailed explanation-3: -Applicability of SGST Act, 2017 SGST is applicable when Intra-state supply is a nature of supply where the supplier’s location and the recipient are in the same state. In this class of supply, the supplier collects both CGST and SGST.

Detailed explanation-4: -The Goods and Service Tax Act provides for two types of GST – Central GST (CGST) and State GST (SGST). The Central Government collects CGST, and the respective state governments collect SGST. The GST revenue is shared between the Central and State governments in a ratio of 50:50 for most goods and services.

Detailed explanation-5: -GST is proposed to be a dual levy where the Central Government will levy and collect Central GST (CGST) and the State will levy and collect State GST (SGST) on intra-state supply of goods or services. The Centre will also levy and collect Integrated GST (IGST) on inter-state supply of goods or services.