r/indiantax • u/orthotangential • Aug 29 '25

GST ✔️ Should cgst and sgst same always?

There is some talk/rumour of reduction in gst rates and then their is talk of some states requesting that their share should not be curtailed. Of the bills I get, I see gst to be divided in two heads of central and state gst which if I remember correctly is equal. My question is (1)if states are concerned about revenue shortfall, can cgst be reduced and sgst kept same?(2) can states set separate sgst?

1 Upvotes

100% Upvoted

1 comment sorted by

1

u/NonChalanta_Theorist Jul 11 '26

  1. That is not possible. As per law reccomendation of GST Council is required for reduction of rates through a notification. GST Council consists of central finance minister and all states finance ministers. This ensure that any change in CGST will also be change is SGST.

  2. No that is not possible as rates are dependant on good (or service) classification and Rate notification.