Glossary
What is SGST and UTGST?
The state's half of the tax on a local sale, and its twin in union territories without a legislature.
Updated
In short
SGST is the state government's half of GST on a supply within that state, charged with CGST at an equal rate. In some union territories UTGST takes its place. SimpleERP applies SGST with CGST on every intra-state invoice.
SGST, State Goods and Services Tax, is the state government's share of GST on a supply within that state, charged together with CGST at half the total rate each. In union territories without their own legislature, such as Chandigarh, UTGST is charged instead of SGST. SGST collected in one state goes to that state and cannot pay tax owed in another.
SGST and UTGST: a worked example
On invoice INV-2026-27-0213, Lakshmi Steel Furnitures bills Ravi Stores in Coimbatore ₹9,980 for 2 steel racks. Assuming 18% GST, SGST of ₹898.20 goes to Tamil Nadu and CGST of ₹898.20 to the centre. A branch registered in Chandigarh selling the same racks locally would show UTGST ₹898.20 in place of SGST. Rates change, so confirm the rate for your goods with your CA or the GST portal before you rely on it.
Where does SGST go, and how is SGST credit used?
SGST collected on a sale is paid, through GSTR-3B, to the state where the supply takes place. Input SGST on purchases is set off first against output SGST and then against IGST, never against CGST. Union territories without a legislature follow the same rules under another name; UTGST covers which territories charge it and the edge cases.
FAQ
Questions, answered
Is SGST the same rate in every state?
SGST is the same rate in every state. GST rates are set by the GST Council for the whole country, so SGST on a product is the same in Tamil Nadu as in Maharashtra. What differs is which state receives the money: the state where the supply takes place.
What is the full form of SGST?
SGST stands for State Goods and Services Tax. Each state levies SGST under its own State GST Act alongside the central CGST, so an intra-state sale at 18% carries CGST 9% and SGST 9%, and the SGST half is paid to that state.
Does a buyer from another state pay SGST at my counter?
A buyer from another state who collects goods at your shop counter usually pays CGST and SGST, because the goods are delivered in your state and the supply is intra-state. If you deliver the goods to the buyer's own state, the supply is inter-state and carries IGST instead.
Does my invoice need separate SGST and CGST lines?
A GST invoice needs separate SGST and CGST lines. A tax invoice must show the rate and amount of each tax separately, so an intra-state invoice lists CGST and SGST, or CGST and UTGST, as two lines. Showing a single 18% GST figure is not enough for the buyer's input tax credit.
Related
Keep reading
CGST
The central government's half of GST on a sale within one state, charged alongside SGST.
Read moreUTGST
GST's union territory half, charged with CGST inside union territories without a legislature.
Read moreGST invoice format
The fields a GST tax invoice must carry, how place of supply picks CGST and SGST or IGST, HSN and SAC codes, and a worked invoice.
Read more
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