Term SGST under GST

Posted on 10 June 2022 Category : GST terms

Meaning of SGST under GST

The details about SGST under GST are explained here.

State Goods and Services Tax (SGST):

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.

State Goods and Services Tax (SGST) Credit:

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.

So SGST credit can be utilized for payment of SGST or IGST but not for CGST or UGST.

This post describes about SGST under GST. Comment below your thoughts about this post SGST under GST.

Learn Exports Imports Free, Click here

Click here to know GST rate of your goods or service

GST Tax returns filing – Who, How and When?

How is time of supply accounted under GST Tax Calculation

Valuation of GST under special cases

Valuation of GST Taxable supply

When to pay GST for supply of services?

When to pay GST?

GST on short supplied goods and services by nature

Impact of GST on imports in India