debora M
(BUSINESS DEVELOPMENT MANAGER)
(1697 Points)
Replied 18 September 2020
The meaning of SGST or State Goods and Services Tax (SGST) is a tax collected in the case of the intrastate transaction when the state of consumption and state of production are the same. The State GST, as the name implies, is a tax collection medium for the State Government. It is collected as a separate tax in the case of intrastate transactions. Similar to CGST, it is charged across all sales and purchases and other non-exempted transactions under the GST Act.
Ramesh from Punjab sells goods to Manoj living in the same state worth ₹ 1,00,000. If the applicable intrastate GST on this transaction is 12%, then 6% is directly charged as CGST and another 6% as SGST. Thus, instead of an integrated tax, the tax is collected separately for the two hierarchical authority, and there is a direct-distribution of tax, instead of indirect taxation.
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