Article no. 246A of the India Constitution was inserted and which has given the power to the Government of India to make law on goods and service tax (GST).
GST means the tax which is levied on the supply of goods and services or both but subject to certain exception.
Need to make INDIA under GST
As India is a developing country and if we see the bigger picture, we can say that in the coming couples of decades India will be the developed country in no matter of time, and approximately all developed countries already shifted to GST tax regime. Earlier than GST, India was on VAT structure and having approximately 19 types of taxes and cesses, to wipe out all those taxes and cesses
Government of India had finally launched the GST tax on 1st July 2017.
GST is sub-divided into 4 parts:
CGST and SGST
It means if the supply of a good is made in union territory* of India, then UTGST will be paid to union territory in place of SGST or we can say UTGST will replace by SGST.
List of Union territories of India for the purpose of UTGST:
Andaman and Nicobar Island
- Daman and Diu
- Dadra and Nagar Haveli