Know All About SGST Act, 2017

Sakshi Jain, CA LLB at April 11, 2024

SGST Act 2017

The SGST full form is State Goods and Services Act 2017. Like CGST and IGST, SGST is also an element of GST. The CGST full form and full form of SGST is central goods and service tax and state goods and services tax. The State Goods and Services Tax Act, 2017 pdf looks after SGST Act, 2017 pdf. So, with the introduction of SGST act 2017 notes and the other indirect taxes levied by the state government in the previous taxation system got subsumed under GST. Moreover, all the tax collected under SGST remains within the hands of state governments. Next, we'll know more about CGST and SGST full form and what is SGST?

Meaning of SGST

The full form of SGST is State Goods and Services Tax Act 2017 (SGST) and SGST meaning is a tax levied on Intra State supplies of goods and services by the State government.

Applicability of SGST Act, 2017

In order to know whether the supply of goods or services or both attracts SGST, it is essential for us to know if the supply is an intra-state or inter-state supply. SGST is applicable when Intra-state supply is a nature of supply where the supplier’s location and the recipient are in the same state. In this class of supply, the supplier collects both CGST and SGST. The value received under CGST is deposited with the Central government, whereas the tax collected under SGST is submitted with the state government.

Features of SGST

Here are some of the significant SGST features :

1. SGST is applicable when gathered by the states on all goods and services provided for consideration.

2. The tax accumulated is deposited into the accounts of the particular state.

3. Each state has its separate SGST act 2017 pdf under its State Goods and Service Tax Department. However, the basic features of the GST law for all the states, like the charges, valuation, taxable event, measure, classification, etc., would remain the same across the respective act of each state.

Difference between CGST, SGST & IGST

Parameters	CGST	SGST	IGST
Full-Form	Central Goods and Services Tax	State Goods and Services Tax	Integrated Goods and Services Tax
Supply	Intra-State	Intra-State	Inter-State
Levied by	Central Government	State Government	Central Government
Collected by	Central Government	State Government	Central Government
ITC Utilization	(i) CGST (ii) IGST	(i) SGST (ii) IGST	(i) IGST (ii) In case of any balance left, towards CGST and SGST
Applicability of composition scheme	Applicable	Applicable	Not Applicable
Registration Criteria	A taxpayer whose aggregate turnover surpasses 40 Lakh INR (20 Lakh INR in particular states) do not need to obtain registration.	A taxpayer whose aggregate turnover surpasses 40 Lakh INR (20 Lakh INR in particular states) do not need to obtain registration.	Every taxpayer who is carrying out inter-state supply needs to obtain registration irrespective of the turnover prescribed.

Understanding the mechanism of GST

Here we see how the different elements under GST work in India. Suppose the GST rate applies to the product by 18%.

Sales From	Sales To	Amount of Sale	Type of Tax	GST Amount	Collecting State
Delhi	Delhi	2,00,000 INR	CGST+SGST (18,000+18,000)	36,000 INR	NA
Delhi	UP	2,00,000 INR	IGST	36,000 INR	UP
Andaman & Nicobar	Andaman & Nicobar	2,00,000 INR	CGST+UTGST (18,000+18,000)	36,000 INR	NA
Andaman & Nicobar	Delhi	2,00,000 INR	IGST	36,000 INR	Delhi
UP	Lakshadweep	2,00,000 INR	IGST	36,000 INR	Lakshadweep

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About the Author

Sakshi Jain, CA LLB

Content Manager

I am a content and marketing manager at Masters India. I am also a tax and finance content writer. I also write academic books on accounts and tax. I have an experience of 7+ years in Income Tax Read more...

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