There will just be one tax: the GST. For instance, when you go to a restaurant today, there are typically four to five different tax components that are included in the total price. Now, the bill will have two taxes: central goods and services tax (CGST) and state goods and services tax (SGST), PwC’s Jain explained. All other components will go away. The CGST revenue will go to the centre, while the SGST to the states. In some cases, the integrated service tax (IGST) will be levied instead of the other two. “The IGST will only be applied when you do an inter-state purchase. So if you buy something on Flipkart, and the seller is not from your state, then he/she may charge me IGST.
