SGST (State GST)

SGST or State GST is the component of GST that goes to the State Government. For every intra-state transaction, the total GST rate is shared equally between CGST and SGST. If the GST rate on a service is 18%, 9% is SGST which accrues to the state where the supplier is located. SGST is administered by the respective state tax department and the revenue belongs to the state government. Input tax credit of SGST can be used to set off SGST and IGST liability, but not CGST — this restriction is a key feature of the GST credit chain. For inter-state supplies, only IGST applies and there is no separate SGST. The SGST Act in each state mirrors the CGST Act in structure, and both were enacted simultaneously when GST was introduced on 1 July 2017. For consumers and businesses, SGST is shown separately on invoices for intra-state transactions, making it clear how much of the tax paid goes to the state exchequer.