SGST

SGST stands for State Goods and Services Tax. It is a component of the Goods and Services Tax (GST) regime in India. When a supply of goods or services is made within a particular state, both the Central Goods and Services Tax (CGST) and the SGST are levied. CGST is collected by the central government, while SGST is collected by the respective state government where the transaction takes place.

The SGST is essentially a state-level tax that replaced various indirect taxes previously levied by individual states, such as sales tax, value-added tax (VAT), entertainment tax, luxury tax, and others. The dual GST structure, comprising CGST and SGST, ensures that both the central and state governments can collect revenue from intra-state transactions.

The rate of SGST is generally the same as the rate of CGST on a particular supply. For example, if the total GST rate on a product is 18%, then CGST would be 9% and SGST would be 9%. The taxpayer needs to pay both these taxes simultaneously. The SGST collected by the state government is used for its own revenue and expenditure. This system aims to create a unified national market by subsuming multiple state taxes into a single, transparent tax framework.