• SGST is a tax levied by the State Government on intra-state supply of both goods and services, and is administered by the SGST Act. As previously stated, the same Intra State supply will be subject to CGST, but it will be administered by the Central Government.
• Note that any SGST tax burden can only be offset against SGST or IGST input tax credits.
• Assume Rajesh is a Maharashtra trader who sold Rs. 10,000 worth of items to Anand in Maharashtra. The GST rate is 18 percent, which is made up of a 9% CGST rate and a 9% SGST rate. In this scenario, the dealer receives Rs. 1800, of which Rs. 900 goes to the Maharashtra government and Rs. 900 goes to the Central Government.

Read More: What is CGST?