Keeping in mind the federal structure of India, there will be two components of GST - Central GST (CGST) and State GST (SGST). Both Centre and States will simultaneously levy GST across the value chain.

Tax will be levied on every supply of goods and services. Centre would levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State.

The input tax credit of CGST would be available for discharging the CGST liability on the output at each stage. Similarly, the credit of SGST paid on inputs would be allowed for paying the SGST on output. No cross utilization of credit would be permitted.

END of Part 4 on GST