GST Registration In Punjab

India, as a federal nation, employs a model for administering Goods and Services Tax (GST) that involves both the Central and State governments in its implementation. Both levels of government possess the authority to impose and collect taxes through their respective legislations.

To facilitate effective tax administration, a Dual GST Model has been established, allowing both the Centre and States to levy taxes simultaneously. The components of GST include:

Central GST (CGST):
Central GST is the tax levied by the Central Government on intra-state supplies of goods and services. This occurs when both the supplier and the buyer are located within the same state. In this case, the seller is responsible for collecting both CGST and State GST (SGST), with CGST being retained by the Central Government and SGST being transferred to the State Government.

State GST (SGST):
State GST is the tax imposed by the State Government on intra-state supplies of goods and services. The revenue generated from this tax is directed to the respective State Government.

Integrated GST (IGST):
Integrated GST applies to inter-state supplies of goods and services and is governed by the IGST Act. In this scenario, the seller collects IGST from the buyer, and this tax is subsequently shared between the Central and State Governments. Notably, inter-state supply occurs when the supplier and the buyer are situated in different states.

Union Territory GST (UTGST):
Union Territory GST is applicable to the consumption of goods and services in the Union Territories (UTs) of India. Under UTGST, the revenue is collected by the respective Union Territory government.