Meaning of SGST
On this blog we have already talked about GST – Introduction and Working and this article is based on State Goods and Services Tax, which is one of the 3 categories under Goods and Services Tax (CGST, IGST and SGST) with a concept of one nation one tax.
It falls under the State Goods and Services Tax Act, 2017.
It is levied on the Intra State movement of goods and services. The revenue collected under State Goods and Services Tax is for the State Government. However, Input Tax Credit on it is given partly to the Centre and partly to the States as it will be utilized against the payment of both SGST and IGST.
The above stated example shows how the taxes would be collected by both the centre and by the state. Both CGST and SGST will be applicable on a single transaction.
In case you are confused about GST as a business owner, feel free to consult the GST experts at LegalRaasta. You can get comprehensive assistance on GST Registration and GST Return Filing. You can also use our GST software for doing end-to-end GST compliance.