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GST is undoubtedly the biggest Indirect Tax reform in
a quarter of a century

A Presentation by
What is GST ?

GST is a consumption based tax levied on sale, manufacture

and consumption on goods & services at a national level.
It is based on the Destination principle. GST is applied on
goods and services at the place where final/actual
consumption happens.

This tax will be substitute for major indirect tax levied by state
and central government

It is one indirect tax for the whole nation, which will make India
one unified common market.
With the increase of international trade in services, GST has
become a global standard.

What are the benefits of GST?
For business and industry
Easy compliance:
Uniformity of tax rates and structures
Removal of cascading
Improved competitiveness
Gain to manufacturers and exporters
For Central and State Governments
Simple and easy to administer
Better controls on leakage
Higher revenue efficiency:
For the consumer
Single and transparent tax proportionate to the value of goods and
Relief in overall tax burden
How does it work?
GST is a single tax on the supply of goods and services,
right from the manufacturer to the consumer.

Credits of input taxes paid at each stage will be available

in the subsequent stage of value addition, which makes
GST essentially a tax only on value addition at each stage.

The final consumer will thus bear only the GST charged by
the last dealer in the supply chain, with set-off benefits at
all the previous stages.

The GST will take the Cascading effect of Tax on
Taxes out of the Equation.
Basic Information /Kind of Tax Manufacturer Wholesaler Retailer Total

A.Transactions (Exclusive of Tax)

1.Sales 600 800 1200 2600

2.Purchase 0 600 800 1400

3.Value-added (A1-A2) 600 200 400 1200

4.Tax on sales (10% of A1) 60 80 120 260

5.Tax on Purchases (10% A2) 0 60 80 140

6.Net tax liability (B4-B5) 60 20 40 120


7.Tax On Retail Sales (10% of A1/R) 120 120

The proposed tax system
The proposed tax system will take the form of dual GST
which is concurrently levied by central and state

This will comprise of:

Central GST (CGST) which will be levied by Centre.
State GST (SGST) Which will be levied by State.
Integrated GST (IGST) which will be levied by Central
Government on
inter-State supply of goods and services.
Which Central taxes has been subsumed
under GST ?
Central Excise Duty
Additional Excise Duties
Excise Duty levied under the Medicinal Preparations
(Excise Duties) Act, 1955
Service Tax
Additional Customs Duty (CVD)/ Countervailing Duty .
Special Additional Duty of Customs(SAD)
Central Surcharge and Cess.
Which State Indirect Taxes & Levies has been
subsumed under GST ?
Entertainment tax (other than the
tax levied by local bodies)
Central Sales Tax
Octroi and Entry Tax
Purchase Tax
Luxury Tax
Taxes on Lottery
Betting and Gambling
State Cesses and Surcharges
The Graphical Presentation of Tax Subsummed
under GST.
Central Excise
Additional duties of Custom (CVD)
CGST Service Tax
Surcharges and all cesses

VAT/sales tax
Entertainment Tax
Luxury Tax
Lottery Tax
Entry Tax
SGST Purchase Tax
Stamp Duty
Goods and passenger Tax
Tax on vehicle
Electricity, banking, Real state


Goods & Services Which not covered under
Exports and direct tax like income tax, corporate tax and
capital gain tax will not be affected by GST.
GST would apply to all goods other than crude petroleum,
motor spirit, diesel, aviation turbine fuel and natural gas.
Tax on alcoholic liquor for human consumption, Tobacco.
Stamp duty, Customs duty.
Taxes on consumption or sale of electricity.
Entertainment tax levied by local bodies .

Exemption list to be pruned for GST

Tea, coffee, biscuits and some medicines, currently

exempted from excise duty, may come under the
proposed goods and services tax (GST)
The Centre's excise duty exemption list of around 300
items will be reduced to the states' value-added tax
(VAT) list of close to 90.
Common items between Centre and states include
bread, eggs, milk, vegetables, cereals, books and
salt, which will continue to be exempted.

Exemption list to be pruned for GST.Cont
As per the official source Items of importance in certain
states could also be exempted. "Coconut oil in Kerala and
sattu in Bihar, Bitten rice on Odisha are of local
importance and state-level exemption could be provided,

The negative list of services has 18 heads, which include

health care, education, goods transport agency and non-
air conditioned restaurants, among others.

Concept of GST
GST is a tax on goods and services with comprehensive and continuous chain of setoff
benefits from the Producers point and Service providers point up to the retailer level.
GST is expected be levied only at the destination point, and not at various points (from
manufacturing to retail outlets). It is essentially a tax only on value addition at each
stage and a supplier at each stage is permitted to setoff through a tax credit mechanism
which would eliminate the burden of all cascading effects, including the burden of
CENVAT and service tax.

Under GST structure, all different stages of production and distribution can be
interpreted as a mere tax pass through and the tax essentially sticks on final
consumption within the taxing jurisdiction.

Currently, a manufacturer needs to pay tax when a finished product moves out from the
factory, and it is again taxed at the retail outlet when sold. The taxes are levied at the
multiple stages such as CENVAT, Central sales tax, State Sales Tax, Octroi, etc. will be
replaced by GST to be introduced at Central and State level.

Concept of GST
All goods and services, barring a few exceptions, will be brought into the GST base.
There will be no distinction between goods and services.

Under GST, the taxation burden will be divided equitably between manufacturing and
services, through a lower tax rate by increasing the tax base and minimizing

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.

The existing CST will be discontinued. Instead, a new statute known as IGST will
come into place on the inter-state transfer of the Goods and Services.

By removing the cascading effect of taxes (CST, additional customs duty, surcharges,
luxury Tax, Entertainment Tax, etc. ),CGST & SGST will be charged on same price .
Impact Areas for Businesses
Pricing, Costing, Margins
Supply-chain management
Change in IT systems

Treatment of tax incentive

Treatment of excluded sectors
Transaction issues
Tax compliance
What impact GST will have on pricing of products as
compared to current
Explanation the implications impact on Price for the
common man in simple terms.
In the above example, you can note that the tax paid on
sale within state can be claim against tax paid on sale
outside state in GST system, which is not in present tax

The credit of CGST cannot be taken against SGST and

credit of SGST cannot be taken against CGST but both
credits can be taken against IGST
Role of Professionals
Tracking GST development
Review of draft legislation and impact analysis
Industry Consultation for improvement in business
Review of final legislation and impact analysis
Implementation assistance
Post implementation support
Tax Planning
Record Keeping
Departmental Audit
Model of GST
SGST and CGST for intrastate transaction : In the GST system, both Central and
State taxes will be collected at the point of sale. Both components (the Central and
State GST) will be charged on the manufacturing cost. This will benefit individuals as
prices are likely to come down. Lower prices will lead to more consumption, thereby
helping companies.

IGST for Interstate transaction: IGST Model will be in place for taxation of inter
State transaction of Goods and Services. The scope of IGST Model is that center
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 GST paid on the purchase of goods and services, to be paid on the supply of
goods and services.

There should be no distinction between raw materials and capital goods in

allowing input tax credit. The tax base should comprehensively extend over all
goods and services up to final consumption point on value addition.

Assessable value for all the taxes will be same.

Source- Toshali
Features of Proposed GST
Destination based Taxation
Apply to all stages of the value chain
Apply to all taxable supplies of goods or services (as
against manufacture, sale or provision of service) made
for a consideration except
o Exempted goods or services common list for
o Goods or services outside the purview of GST
o Transactions below threshold limits Dual GST
having two concurrent components
o Central GST levied and collected by the Centre
o State GST levied and collected by the States
Features of Proposed GST contd.
CGST and SGST on intra-State supplies of goods or services in India.

IGST (Integrated GST) on inter-State supplies of goods or services in

India levied and collected by the Centre.

IGST applicable to
o Import of goods and services
o Inter-state stock transfers of goods and services

Export of goods and services Zero rated.

Additional Tax of 1% on Inter State Taxable supply of Goods by State

of Origin and non CENVATABLE
How would a particular transaction of goods and services be taxed
simultaneously under Central GST (CGST) and State GST (SGST)?

The Central GST and the State GST would be levied

simultaneously on every transaction of supply of goods and
services except on exempted goods and services, goods which
are outside the purview of GST and the transactions which are
below the prescribed threshold limits.

Further, both would be levied on the same price or value unlike

State VAT which is levied on the value of the goods inclusive of
Central Excise.
A diagrammatic representation of the working of the Dual GST
model within a State
How will be Inter-State Transactions of Goods and Services be
taxed under GST in terms of IGST method?

In case of inter-State transactions, the Centre would levy and collect the Integrated Goods and Services Tax
(IGST) on all inter-State supplies of goods and services under Article 269A (1) of the Constitution.

The IGST would roughly be equal to CGST plus SGST.

The IGST mechanism has been designed to ensure seamless flow of input tax credit from one State to another.

The inter-State seller would pay IGST on the sale of his goods to the Central Government after adjusting credit
of IGST, CGST and SGST on his purchases (in that order).

The exporting State will transfer to the Centre the credit of SGST used in payment of IGST.

The importing dealer will claim credit of IGST while discharging his output tax liability (both
CGST and SGST) in his own State.

The Centre will transfer to the importing State the credit of IGST used in payment of SGST.Since GST is a
destination-based tax, all SGST on the final
product will ordinarily accrue to the consuming State. Cont.
Illustration for IGST Model
Mr. X (based in WB) supplied Goods to Mr. Y (based in
Odisha) and paid 17% IGST. Mr. X has Input credit of
CGST 8% and SGST 8% from local Purchases. So he paid
only 1% to Central Government Account i.e. in IGST code
of that product. WB will transfer to Centre 8% SGST used
for payment of IGST.
Mr. Y (based in Odisha) who had purchased those goods
supplied the same locally to Mr. Z (based in Odisha) and
liable to SGST 10% and CGST 8%. He will utilize Credit of
IGST of 17% first for CGST (8%) and balance for SGST
(9%) and will pay 1% in cash. Odisha Government where
goods are consumed is entitled to get destination based
tax i.e. SGST. Centre will transfer 9% IGST Credit used for
payment of SGST to Odisha. In this example, few
important points may be noted: Cont.
Illustration for IGST Model
WB Government in this transaction will not get any tax since it is
inter state supply from WB to Odisha
Odisha Government will get 10% SGST for Import of Goods (9%
from central Government and 1 % paid as cash by Mr. Y)
Central Government will get 9% IGST on inter-state supply of goods
to Odisha (8% from WB Government and 1% paid as Cash by Mr.
Important to note is that while Central Government got 9% as tax,
at the same time Mr. Y (based in Odisha) has been allowed full
credit of IGST paid by Mr. X (based in WB)
A diagrammatic representation of the working of the IGST model for inter-
State transactions
Stakeholder in Business Chain

2. Wholesaler
and Banks

4.Consumer 3.Retailer

GST Set off Chain
Input Credit of Goods+ services
After taking set off of Input credit, pay the Output Liability on value addition

Input Credit of Goods+ services from manufacturer

After taking set off of Input credit, pay the Output Liability on value addition

Input Credit of Goods+ services from wholesaler

Retailer After taking set off of Input credit, pay the Output Liability on value addition

Consumer Ultimate Output Liability recovered from consumer

Source- Toshali
Set-off methodology
Since the Central GST and State GST are to be treated separately, in
general, 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.

Cross utilization of ITC between the Central GST and the State GST would,
in general, be allowed.

ADC paid on Import of goods and service would fall under the IGST and
this duty would be allowed for setoff of SGST and CGST.

Source- Toshali
Set off Heads

IGST Input
Input Input
Output Output Output
Output Output Output

Illustration of GST
The illustration shown below indicates, in terms of a hypothetical example with a manufacturer, one
wholesaler and one retailer, how GST will work.

Manufacturer : Let us suppose that CGST rate is 10% and SGST rate is 5% , with the manufacturer
making value addition of Rs.30 on his purchases worth Rs.100 of input of goods CGST paid @10%)
and services used in the manufacturing process. The manufacturer will then pay net CGST of Rs. 3
after setting-off Rs. 10 as CGST paid on his inputs (i.e. Input Tax Credit) from gross CGST of Rs. 13
and Rs, 6.5 as SGST.
Gross Value:130 on that CGST 13/- and SGST 6.5/-
Input Credit: CGST 10-/ and SGST NIL/-
Net Liability: Rs. 3 + 6.5 = 9.5/-

Wholesaler: The manufacturer sells the goods to the wholesaler. When the wholesaler sells the
same goods after making value addition of (say), Rs. 20, he pays net CGST of only Rs. 2, after
setting-off of Input Tax Credit of Rs. 13, from the gross CGST of Rs. 15 and net SGST of only Rs. 1,
after setting-off of Input Tax Credit of Rs. 6.5, from the gross SGST of Rs. 7.5 to the manufacturer.
Gross Value:150 on that CGST 15/- and SGST 7.5/-
Input Credit: CGST 13-/ and SGST 6.5/-
Net Liability: Rs. 2 + 1 = 3/-
Source- Toshali
Functioning of GST
Retailer: Similarly, when a retailer sells the same goods after a value
addition of (say) Rs. 10, he pays net CGST of only Re.1, after setting-off Rs.15
from his gross GST of Rs. 16 and net SGST of only Rs. 0.5, after setting-off of
Input Tax Credit of Rs. 7.5, from the gross SGST of Rs. 8/- paid to wholesaler.
Gross Value:160 on that CGST 16/- and SGST 8/-
Input Credit: CGST 15-/ and SGST 7.5/-
Net Liability: Rs. 1 + 0.5 = 1.5/-

Total Liability: Thus, the manufacturer, wholesaler and retailer have to pay
only Rs. 6 (= Rs. 3+Rs. 2+Rs. 1) as CGST Rs. 8 (= Rs. 6.5+Rs. 1+Rs. 0.5) as
SGST and on the value addition along the entire value chain from the
producer to the retailer, after setting-off GST paid at the earlier stages. This
is shown in the table in next slide. The same illustration will hold in the case
of final service provider as well.
CGST & SGST Tax Liability working
Value at Net
Which Net SGST=S
Purch Supply CGST Input Input
Stage ase Rate CGST CGST=CGS GST on
Value Goods on Tax Tax
of Rate of of T on output-
Supply Value Additi and on Outpu Credit Credit
SGST SGST Output t output- Input
Chain Of on Services on on
CGST SGST Input Tax Tax
Input Made to Credit Credit
Manu 1310 = 6.5-0=
factur 100 30 130 10% 5% 13 6.5 10 0 3 6.5
Whol 1513 = 7.5-
e 130 20 150 10% 5% 15 7.5 13 6.5 2 6.5=1
Retail 150 1615 = 8-
10 160 10% 5% 16 8 15 7.5 7.5=0.
er 1 5

Source- Toshali
Mechanism of Dual Taxation
After introduction of GST, all the traders including manufacturer will be paying both the types of taxes
i.e. CGST and SGST. The Central GST and the State GST would be levied simultaneously on every
transaction of supply of goods and services except the exempted goods and services, goods which are
outside the purview of GST and the transactions which are below the prescribed threshold limits.
Further, both would be levied on the same price or value unlike State VAT which is levied on the value
of the goods inclusive of CENVAT, i.e CGST & SGST will be charged on same price
Supply of Goods: Suppose the rate of CGST is 10% and that of SGST is 10%. When a wholesale
dealer of steel in Uttar Pradesh supplies steel bars and rods to a construction company, which is also
located within the same State for , say Rs. 100, the dealer would charge CGST of Rs. 10 and SGST of
Rs. 10 in addition to the basic price of the goods.
Supply of Services : Suppose, that the rate of CGST is 10% and that of SGST is 10%. When an
advertising company located in Mumbai supplies advertising services, to a company manufacturing
soap which is also located within the State of Maharashtra for, Rs. 100, then the ad company would
charge CGST of Rs. 10 as well as SGST of Rs. 10 to the basic value of the service.

In both the cases, he would be required to deposit the CGST component into a Central Government
account and the SGST portion into concerned State Government account. He need not actually pay duty
in cash, as he would be entitled to set-off this liability against the CGST or SGST paid on his purchases
(say, inputs). But for paying CGST he would be allowed to use only the credit of CGST & SGST paid on
his purchases respectively. In other words, CGST credit cannot, in general, be used for payment of SGST.
Nor can SGST credit be used for payment of CGST.
GST on Import of Goods and services

With Constitutional Amendments, both CGST and SGST will be levied on import of goods
and services into the country.
The incidence of tax will follow the destination principle(Place of supply rules).
Tax revenue in case of SGST will accrue to the State where the imported goods and
services are consumed.
Full and complete set-off will be available on the GST paid on import on goods and
Thus, import of goods will attract BCD and IGST. It may be noted that import of services,
as against service tax at present, in GST regime, will attract IGST.
Basic Custom Duty will continue to there under GST system. However, the additional
custom duty in lieu of CVD /Excise and the Special Additional Duty (SAD) in lieu of sales
tax/VAT will be subsumed in the import GST.
The import of services will be subject to Central GST and State GST on a reverse charge
mechanism. In other words, the GST will be payable by the Importer on a self declaration

Source- Toshali
Taxable Person

It will cover all types of person carrying on business

activities, i.e. manufacturer, job-worker, trader, importer,
exporter, all types of service providers, etc.
If a company is having four branches in four different states,
all the four branches will be considered as TP (Taxable
person) under each jurisdiction of SGs.
A dealer must get registered under CGST as it will make him
entitle to claim ITC of CGST thereby attracting buyers under
B2B (Business to Business) transactions.
Importers have to register under both CGST and SGST as
well. Source- Toshali
GST on Export of Goods and Services
GST on export would be zero rated.
Similar benefits may be given to Special Economic Zones (in
processing zones only).
No benefit to the sales from an SEZ to Domestic Tariff Area (DTA).
GST paid by Exporter on the procurement of goods and
services will be refunded.

Source- Toshali
Registration under GST

NSDL has been appointed to incubate the GST Portal and develop its
NSDL has created a pilot portal known as GST Pilot Portal
Here, every tax payer will be issued a 15 digit common identification number
which will be called as Goods & Service Tax Identification Number (GSTIN) a
PAN based number.

Each taxpayer would be allotted a PAN linked taxpayer identification number

with a total of 13/15 digits.

This would bring the GST PAN-linked system in line with the prevailing PAN-
based system for Income tax facilitating data exchange and taxpayer

The exact design would be worked out in consultation with the Income-Tax

Source- Toshali
Returns under GST
The taxpayer would need to submit periodical returns to both the
Central GST authority and to the concerned State GST
ITC credit can also be verified on the basis of the returns filed
and revenues reconciled against Challan data from banks.
Common standardized return for all taxes (with different account
heads for CGST, SGST, IGST) can come into picture.
Common standardized Challan for all taxes (with different
account heads for CGST, SGST, IGST) can come into picture.

Taxable Event

Existing Practice GST

Taxable event is Supply of Goods & service

Excise Duty-Manufacturing,

The location of the supplier and the recipient

Sales Tax/VAT- Sale of Goods within the country is immaterial for the purpose of

Service Tax- Realization of Service SGST would be chargeable only when the
supplier and the recipient are both located
within the State.

Inter state Supply of goods and services will

attract IGST.

GST Invoice
The Task Force on GST said the computation of CGST and
SGST liability should be based on the Invoice credit method.
i.e., allow credit for tax paid on all intermediate goods and
services on the basis of invoices issued by the supplier.
Invoice level detail is necessary for the reconciliation of tax
deposits, and the end-to-end reconciliation of ITC. An effective
IGST implementation may also require invoice-level details.
A number of states are capturing invoice details even in the
existing VAT systems. It is proposed to follow a two-pronged
approach with Dealer level granularity of returns in the first
phase followed by invoice level in the next phase.

Rate of Tax
The combined GST rate is being discussed by government.
The rate is expected around 18 per cent. After the total GST
rate is arrived at, the States and the Centre will decide on
the CGST and SGST rates. Currently, services are taxed at
15 per cent and the combined charge indirect taxes on most
goods are around 20 per cent.

Today the Rate of GST in some countries are Australia10%,

France19.60%, Canada5%, Germany19%, Japan5%,
Singapore7%, Sweden25%, New Zealand15% &
Composition scheme
A Composition/Compounding Scheme will be an
important feature of GST, to protect the interests of
small traders and small scale industries. The
Composition/Compounding scheme for the purpose
of GST should have an upper ceiling on gross annual
turnover and a floor tax rate with respect to gross
annual turnover.
In particular there will be a compounding cut-off at Rs.
50 lakhs of the gross annual turnover and the floor
rate of 0.5% across the States. The scheme would
allow option for GST registration for dealers with
turnover below the compounding cut-off.
How will IT be used for the implementation of GST?

For the implementation of GST in the country, the Central and State Governments have jointly
registered Goods and Services Tax Network (GSTN) as a not-for-profit, non-Government Company
to provide shared IT infrastructure and services to Central and State Governments, tax payers and
other stakeholders.

The key objectives of GSTN are to provide a standard and uniform interface to the taxpayers, and
shared infrastructure and services to Central and State/UT governments.

GSTN is working on developing a state-of-the-art comprehensive IT infrastructure including the

common GST portal providing frontend services of registration, returns and payments to all
taxpayers, as well as the backend IT modules for certain States that include processing of returns,
registrations, audits, assessments, appeals, etc. All States, accounting authorities, RBI and banks,
are also preparing their IT infrastructure for the administration of GST.

There would no manual filing of returns. All taxes can also be paid online. All mis-matched returns
would be auto-generated, and there would be no need for manual interventions. Most returns
would be self-assessed.
Information Flow and Associated Entities

Send Challan
Taxpayer Banks and RBI

File Returns Upload Challan


State 1Portal
Portal) State 2 Portal
Common GST
CGST and IGST Portal
Returns (Reconciliation
system) Return State N Portal

Increased Assessee Base
Under the CGST model proposed, with
threshold of annual turnover of Rs.10
lakhs, the present Assessee base of
Excise and Service Tax of about 10 lakhs
will increase to about 50 lakhs as every
manufacturer and Trader above the
specified threshold will be liable to CGST.

Tax reconciliation between Central and State
The Exporting State will transfer to the Centre the
credit of SGST used in payment of IGST.
The Importing dealer will claim credit of IGST while
discharging his output tax liability in his own State,
The Centre will transfer to the importing State the
credit of IGST used in payment of SGST,
The relevant information will also be submitted to
the Central Agency which will act as a clearing
house mechanism.

Impact of GST on Hospitality Industry

A unified common tax regime in India thereby eliminating state

boundaries and making India One Country One Tax soon.
Tax rates across various states will be uniform.
The consumer will benefit from lower taxation, as there will be no
tax on tax at different levels.
It is still a wait and watch on how the abatement/ presumptive tax
based provisions available currently to the tour operators, money
changers and air travel agents are transitioned in the GST regime.
Under the GST regime, it is expected that supplies of hotels and
restaurants, a major cost component of tour services, will be
subjected to a single tax, resulting in reduction in the cascading effect
of taxes and hence increased cost efficiency to benefit travellers.
Hotel Industry Cautiously optimistic of the
Impact of GST
The hotel Industry is hopeful that implementation of Goods & Servies
Taxes (GST) will impact it positively, but there is concern about the
possible high rate of GST for the industry. The industry is awaiting
clarity on the GST rate. The actual impact of GST on the hotel
industry will depend on the GST rate applicable to the industry.
The government should keep GST levels for the hospitality industry
between 8 & 10 %
The GST is supposed to replace both service tax and luxury tax as
hotels are presently suffering from multiplicity of taxation.
Though the passing of the GST Bill is a step in the right direction but
if it is at a high percentage of what we are facing today, it is not
going to have any positive impact on the industry. We expect the
government to understand that tourism is a globally competitive
business. Contd.

Download Source- www.taxguru.in

Hotel Industry Cautiously optimistic of the Impact of GST Contd.

The implementation of GST may also improve Indias

competitiveness as tourist destination.
GST regime will definitely make doing business easier and
reduce paper work for hotels, but taxes should be capped low.
When the tax rate is high, it will negatively impact the
revenue for hotels.
We are still awaiting the clarity on GST rate. As of now GST
rate are not clear. We will have to see what will be effective
rate of GST to make an assessment of the overall impact of the
implementation of GST on the hotel industry. GST rate for the
hotel industry should be kept low as it is in many countries.
Flaws of GST Model
Major flaw of this model is ,Local Dealers have to pay CGST
in addition to SGST.
In Addition to this, CGST mainly represents the
Excise/service tax and SGST mainly represents the VAT
portion but, because of No differentiation between Goods
and Services service supply within the state would attract
SGST as GST is levied at each stage in the supply chain and
Assessee have to Pay CGST as well SGST.
The issue which still needs to be resolved are, the revenue
sharing between States and Centre, and a framework for
exemption, thresholds and composition .