GST stands for Goods and Services Tax which will be levied on the supply of goods or services or both in India. From July 01, 2017, GST came into effect and it replaced many indirect taxes such as sale tax, services tax, excise, entry tax, luxury tax and other similar taxes. We can say that GST is a single domestic indirect tax law for the entire country. All the businesses whose turnover from sales of goods exceeds Rs. 40 lakh (Rs. 20 lakh for northeastern and hilly states, including Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand) and whose turnover from the sale of services exceeds Rs. 20 lakh (Rs. 10 lakh for northeastern and hilly states, including Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand) require mandatory registration of entity under GST Law. If the organization carries on business without registering under GST, it will be an offence under GST and heavy penalties will apply. You can register your entity on a voluntary basis too and enjoy credibility in the market. GST is classified into four categories, i.e.

CGST- The CGST (Central Goods & Services Tax) is the tax collected by the Central Government on the transaction of goods and services within a state. This tax is universal and is a replacement for all other taxes imposed by the Centre such as CST, SAD and so on.

SGST- The state government of each state imposes the SGST or the State Goods & Services Tax. This tax has replaced all the other taxes that were levied by the state such as Entertainment Tax, Entry Tax, VAT and the like. The state is the sole owner of the revenue collected from the imposition of SGST.

IGST- This refers to the application of the tax on the transaction of goods and services between two states. Known as the Integrated Goods & Services Tax, IGST is applicable when services or materials are transported from one state to a different one. UTGST- This particular tax is only meant for the five Union Territories in India.
It has the same purpose and advantages as the SGST; the only difference is that it is applicable only in Chandigarh, Daman and Diu, Andaman and Nicobar Islands, Lakshadweep and Dadra and Nagar Haveli.