problem with sgst

SGST 118 views 2 replies
Can SGST vary From state to state?
Replies (2)
i think no

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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