Paragraph -

If you have any query and If you would like our help in this, you can contact us. You can leave your email id. We will contact you as soon as possible, and you can also sign up for a newspaper, in which we will keep you updated about GST.

SGST, Features, Applicability, Rates revised

What is SGST?

SGST (State Goods and Services Tax) is a type of tax under GST, in India and caters to the concept of one tax one nation. SGST comes under the State Goods and Services Tax Act 2017. In addition, this tax levy is governed by the State Goods and Services Tax (SGST). SGST is levied on the transactional value of the goods or services supplied as per Section 15 of the SGST Act. This Act doesn't include the supply of alcohol for human consumption.

Features of S-GST

All goods and services supplied for SGST consideration are levied and collected by respective states.
Each state has a separate SGST Act under its State Goods and Services Tax Department. However, the basic features of GST law for all states such as fees, valuation, taxable incidence, measurement, classification, etc. will remain the same in the respective Acts of each state.
The tax collected is deposited in the accounts of the respective state.
SGST does not apply to exempted goods and services as they do not come under the effect of GST. Further, SGST is also not applicable where the total annual turnover is less than the prescribed limit.

Applicability of SGST

The applicability of SGST/UTGST and other taxes like IGST and CGST under GST depends on the nature of supply in a given transaction. There are two types of supply:

Intra-State Supply
Inter-State Supply.

Intra-State Supply -

When the supply location of the supplier is in the same state or union territory. In the case of the supply of such goods and services, a vendor has to deposit both CGST and SGST. After depositing both taxes, part of CGST is deposited with the Central Government. And part of SGST is deposited with the concerned state government.

Let's try to understand with an example: Singh’s Enterprises, a manufacturer in Rajasthan, supplies goods to Kumar’s Traders, a dealer in Rajasthan. Goods worth Rs 1,00,000 are supplied by Sanjay Enterprises after adding GST @ 18%. Since it is an intra-state supply, GST gets deposited to both Central and State Governments. But the total GST amounting to Rs 18,000 gets deposited equally into separate heads. This means Rs 9,000 gets deposited into the CGST account. And another Rs 9,000 gets deposited into the SGST part.

Inter-State Supply

When the supplier's location and place of supply come in: