GST will have 3 tax components, which include a central component (Central Goods and Services Tax or CGST) and a state component (State Goods and Services Tax or SGST) where centre and state will levy GST on all entities, i.e. when a transaction happens within a state. Inter-state transactions will attract the Integrated Goods and Services Tax (IGST), be levied by the center, i.e. when a transaction happens one state to another.
The components are state GST, Central GST and Integrated GST
In GST jurisdiction, any business whose turnover crosses the limit of Rs 40 lakhs (Rs10 lakhs for NE and hill states) should register as separate taxable entity. This process is called GST registration. It takes 2-6 working days to get the GST registration done. Carrying out business without GST registration is considered as an offence under GST.
Component of GST -