Glossary · GST & Indirect Tax
SGST
State Goods and Services Tax — the state government's share of GST levied on intra-state transactions.
SGST is levied alongside CGST on every intra-state supply under the respective State GST Act. Its revenue accrues to the state where the supply takes place. The applicable rate is half of the total GST rate. SGST credit can be used only against SGST and IGST liabilities, not against CGST.
Examples
A restaurant in Mumbai charging 5% GST on a ₹1,000 bill adds 2.5% CGST + 2.5% SGST, total ₹50.