SGST

SGST Full form and Definition

State Goods and Services Tax (SGST) is a tax levied by the state government on the sale of goods and services within its jurisdiction. As per the GST law, the central government collects CGST and SGST or only IGST depending upon whether the transaction is intrastate or interstate, respectively. 

SGST is applicable whenever a transaction occurs between a supplier and a customer located within the same state.

SGST Rates and Filing Deadlines

The SGST rates in India are similar to the CGST rates, and the primary SGST slabs for any regular taxpayers are presently pegged at 0% (nil-rated), 5%, 12%, 18%, and 28% .There are a few lesser-used SGST rates such as 3% and 0.25%. Also, the composition taxable persons must pay SGST at lower or nominal rates such as 1.5% or 5% or 6% on their turnover.

Businesses registered under SGST are required to comply with certain regulations to ensure smooth functioning of the tax system. The frequency of filing depends on the turnover of the business. Businesses with a turnover of less than Rs.1.5 crores are required to file returns quarterly, while businesses with a turnover of more than Rs.1.5 crores are required to file returns monthly.

SGST Vs CGST

While SGST is levied by the state government, Central Goods and Services Tax (CGST) is levied by the central government on the same transaction. The SGST and CGST are levied on the taxable value of the transaction separately, but the rate of tax is the same for both. The SGST and CGST are collected by the respective governments and used to fund various developmental activities in their respective jurisdictions.

In conclusion, SGST is a tax levied by the state government on the sale of goods and services within its jurisdiction. It is governed by the SGST Act, and is collected along with CGST or IGST, depending on the nature of the transaction.