How GST will work? Transactions under GST

There would be mainly two transaction under GST as below:

Intra State (Within same state) Transactions:

Transactions made within a single state will be levied with Central GST (CGST)by the Central Government and State GST (SGST) by the government of that state.

Inter State (Between two states)Transactions:

For inter-state transactions and imported goods or services, an Integrated GST (IGST) is levied by the Central Government. GST is a consumption based tax, therefore, taxes are paid to the state which the goods or services are consumed not the state in which they were produced. IGST simplifies tax collection for State Governments by enabling them to collect the tax owed to them directly from the Central Government. Under the previous system, a state would have to deal with multiple state governments in order to collect tax revenue. 

To summarise: