Interstate GST and Intrastate GST
GST is applicable to both interstate GST and intrastate GST transactions, each with its own set of tax rates and regulations. GST, which stands for Goods and Services Tax, is a comprehensive indirect tax introduce in India on July 1, 2017. It replaced multiple indirect taxes levied by the central and state governments, creating a unified tax structure throughout the country.
Interstate GST applies to the supply of goods or services between different states, as well as to transactions involving union territories or foreign countries. When goods or services are supply from one state to another, the tax collected is known as Integrate GST (IGST). The central government collects IGST, and later distributes it to the respective state governments based on the destination of the goods or services.
On the other hand, intrastate GST, also known as State GST (SGST), is levy on the supply of goods or services within the same state. The state government collects SGST, which is applicable when both the supplier and recipient are locate within the boundaries of the same state. In addition to SGST, Central GST (CGST) is collect by the central government on intrastate transactions.
For more information visit this site: https://www.gst.gov.in/
In summary, the key distinction between interstate GST and intrastate GST is that the former applies to transactions between different states or union territories, while the latter applies to transactions within the same state. The tax collected on inter-state transactions is call IGST, whereas on intra-state transactions, both SGST and CGST are levy.
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