{"id":7128,"date":"2025-06-26T12:46:20","date_gmt":"2025-06-26T12:46:20","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&#038;p=7128"},"modified":"2025-06-26T12:46:23","modified_gmt":"2025-06-26T12:46:23","slug":"types-of-gst","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/types-of-gst\/","title":{"rendered":"Types of GST"},"content":{"rendered":"<p><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/goods-and-services-tax-gst\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Goods and Services Tax (GST)<\/a> in India is like a big umbrella <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tax\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>tax<\/a> that replaces many smaller taxes. But did you know that <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/gst\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>GST<\/a> actually has <strong>four types<\/strong>? Let&rsquo;s understand what SGST, CGST, <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/what-is-igst\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>IGST<\/a>, and UGST mean&mdash;in the simplest way possible.<\/p>\n\n\n\n<h2 id=\"what-is-gst\" class=\"wp-block-heading\">What is GST?<\/h2>\n\n\n\n<p>GST stands for <strong>Goods and Services Tax<\/strong>. It is a single tax system applied to the sale of goods and services across India. The idea is &#x201C;One Nation, One Tax,&#x201D; but because both the central and state governments collect tax, GST is split into types.<\/p>\n\n\n\n<h2 id=\"1-sgst-state-goods-and-services-tax\" class=\"wp-block-heading\">1. <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/sgst-state-goods-and-services-tax\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">SGST &#x2013; State Goods and Services Tax<\/a><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Who collects it?<\/strong> Your <strong>state government<\/strong><\/li>\n\n\n\n<li><strong>When is it applied?<\/strong> When you <strong>buy something within your own state<\/strong><\/li>\n\n\n\n<li><strong>Where does the money go?<\/strong> To the <strong>state government<\/strong> where the sale happened<\/li>\n<\/ul>\n\n\n\n<p><strong>Example<\/strong>: You live in Maharashtra and buy a phone from a shop in Maharashtra. You pay SGST to the Maharashtra government.<\/p>\n\n\n\n<h2 id=\"2-cgst-central-goods-and-services-tax\" class=\"wp-block-heading\">2. CGST &#x2013; Central Goods and Services Tax<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Who collects it?<\/strong> The <strong>central government<\/strong><\/li>\n\n\n\n<li><strong>When is it applied?<\/strong> On the same <strong>intra-state sale<\/strong><\/li>\n\n\n\n<li><strong>Where does the money go?<\/strong> To the <strong>central government<\/strong><\/li>\n<\/ul>\n\n\n\n<p><strong>Example<\/strong>: That same phone you bought in Maharashtra also includes CGST, which goes to the central government.<\/p>\n\n\n\n<p><strong>So for within-the-state sales<\/strong>, both CGST and SGST are applied <strong>equally<\/strong>. If GST is 18%, then 9% is CGST and 9% is SGST.<\/p>\n\n\n\n<h2 id=\"3-igst-integrated-goods-and-services-tax\" class=\"wp-block-heading\">3. IGST &#x2013; Integrated Goods and Services Tax<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Who collects it?<\/strong> The <strong>central government<\/strong><\/li>\n\n\n\n<li><strong>When is it applied?<\/strong> When you <strong>buy or sell across states<\/strong><\/li>\n\n\n\n<li><strong>Where does the money go?<\/strong> The <strong>central government collects it<\/strong>, then splits it with the <strong>destination state<\/strong><\/li>\n<\/ul>\n\n\n\n<p><strong>Example<\/strong>: A seller in Gujarat sends a fridge to a buyer in Tamil Nadu. The buyer pays IGST. The central government later gives Tamil Nadu its share.<\/p>\n\n\n\n<p><strong>IGST ensures that the tax goes to the state where the goods are used, not where they are made.<\/strong><\/p>\n\n\n\n<h2 id=\"4-ugst-union-territory-goods-and-services-tax\" class=\"wp-block-heading\">4. UGST &#x2013; Union Territory Goods and Services Tax<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Who collects it?<\/strong> The <strong>union territory government<\/strong><\/li>\n\n\n\n<li><strong>When is it applied?<\/strong> On sales within a <strong>Union Territory (UT)<\/strong><\/li>\n\n\n\n<li><strong>Where does the money go?<\/strong> To the <strong>UT&#x2019;s administration<\/strong><\/li>\n<\/ul>\n\n\n\n<p><strong>Example<\/strong>: You buy groceries in Chandigarh. UGST is charged alongside CGST.<\/p>\n\n\n\n<p>Applies to: Andaman &amp; Nicobar Islands, Chandigarh, Dadra &amp; Nagar Haveli and Daman &amp; Diu, Lakshadweep, and Ladakh.<\/p>\n\n\n\n<h2 id=\"quick-comparison-table\" class=\"wp-block-heading\">Quick Comparison Table<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Type<\/th><th>Applies To<\/th><th>Collected By<\/th><th>Example<\/th><\/tr><\/thead><tbody><tr><td>SGST<\/td><td>Intra-state sales<\/td><td>State Govt<\/td><td>Buying a book in your own state<\/td><\/tr><tr><td>CGST<\/td><td>Intra-state sales<\/td><td>Central Govt<\/td><td>Same as above<\/td><\/tr><tr><td>IGST<\/td><td>Inter-state sales<\/td><td>Central Govt<\/td><td>Buying clothes from another state<\/td><\/tr><tr><td>UGST<\/td><td>Intra-UT sales<\/td><td>Union Territory<\/td><td>Buying goods within a UT<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"simple-metaphor\" class=\"wp-block-heading\">Simple Metaphor<\/h2>\n\n\n\n<p>Think of GST as a pizza. When the pizza (tax) is sliced:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>SGST &amp; CGST<\/strong> share it between the <strong>state and centre<\/strong> for local delivery.<\/li>\n\n\n\n<li><strong>IGST<\/strong> is like a pizza sent across cities&#x2014;it goes through the central kitchen, and then to the final state.<\/li>\n\n\n\n<li><strong>UGST<\/strong> is for smaller places (UTs) with their own little pizza corners.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"conclusion\" class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>Understanding the four <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/types-of-gst\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">types of GST<\/a>&#x2014;<strong>SGST, CGST, IGST, and UGST<\/strong>&#x2014;makes it easier to see where your tax money goes. Whether you&#x2019;re buying something locally, online from another state, or in a Union Territory, GST adjusts itself so everyone gets their fair share.<\/p>\n\n\n\n<p>Let me know if you&#x2019;d like this in a visual chart or downloadable format!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Goods and Services Tax (GST) in India is like a big umbrella tax that replaces many smaller taxes. But did you know that GST actually has four types? Let&#x2019;s understand what SGST, CGST, IGST, and UGST mean&#x2014;in the simplest way possible. What is GST? GST stands for Goods and Services Tax. It is a single [&#x2026;]<\/p>\n","protected":false},"author":9,"featured_media":0,"menu_order":0,"template":"","meta":{"footnotes":""},"class_list":["post-7128","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7128","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7128\/revisions"}],"predecessor-version":[{"id":7129,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7128\/revisions\/7129"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=7128"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}