According to the GST bill, there will be a dual GST model and the taxes will be levied on each kind of transaction.

SGSTState GST, levied and collected by the State Govt.

CGSTCentral GST , levied and collected by the Central Govt.

IGSTIntegrated GST, collected by the Central Govt. It would be levied on inter-State supply (including stock transfers) of goods or services. This would be collected by the Center so that the credit chain is not disrupted.

Implementation of GST




  • IGST will be applicable to
    • Import of goods and services. Import of goods or services would be treated as inter-State supplies and would be subject to IGST in addition to the applicable customs duties.
    • Inter-state stock transfers of goods and services.
  • For   an   initial   period   of   two   years   or   as   further   extended on the recommendation of the GST Council ,  a non-vatable additional tax not exceeding 1% on inter-State supply of goods would be levied and collected by the Center and assigned to the originating State. The Select Committee of the Rajya Sabha has recommended that this tax should be levied only when the supply is made for a consideration. (This is yet to be finalised)
  • CGST, SGST & IGST would be levied at rates to be mutually agreed upon by the Center and the States under the aegis of the GST Council.
  • Exports would be zero-rated.
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