Term Intra State Sales under GST

Meaning of term Intra State Sales under GST


This post explains about Intra State Sales under GST.

Intra State sales

State Goods and Service Tax (SGST)

Intra State Sales also known as sales within the state. State GST would replace State VAT, Entry tax, Octroi, Luxury tax, etc. SGST would be levied on services as well. To enable taxing of services by the State, the Constitutional Amendment Act, 2016 contains suitable provisions. SGST is to be administered by the State Governments. The SGST payable could be set off from the SGST credit or the IGST credit available. The closing input VAT balance available under VAT Act would also be made available to the dealer, as on the date of transition into GST, and could be set off towards SGST (State GST) liability. Further the duty and tax paid on closing stock would also be available as credit, which may not have been claimed as set off in the VAT regime.

Intra State Transactions of Goods & Services in proposed GST Regime

 For Intra State Transactions GST will have two concurrent components –

  • Central GST levied and collected by the Centre   
  • State GST levied and collected by the States

It will apply to all taxable supplies of goods or services (as against manufacture, sale or provision of service) made for a consideration except –

  • Exempted goods or services – common list for CGST & SGST
  • Goods or services outside the purview of GST
  • Transactions below threshold limits

The State Government will be entitled to charge SGST on taxable supplies of GOODS and/or SERVICES. As per the present Tax regime the State Governments are not entitled to levy Taxes on Provision of Services, however in GST regime they will be entitled to tax Intra State Supply of Services as well. Hence in this way the tax base for State Government will get broadened. The Central GST and State GST are to be paid to the accounts of the Centre and the States separately.

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