The Goods and Service Tax (GST) is India’s most significant tax reform, and since India is one of the emerging economies in the world, it is one of the world’s most extensive tax reforms as well. The GST has come when India is looking to digitize its economy, and SGST is an essential type of GST.
SGST- An Introduction
SGST full form is State Goods and Service Tax and covers under the State Goods and Service Tax Act (SGST) 2017. A collection of SGST is the revenue for the State Government. All the state taxes, like Value Added Tax, Entertainment Tax, Luxury Tax, and Entry Tax, are merged under SGST.
Benefits of SGST
The benefits of SGST for business in India include:
Easy Tax Structure- Rather than paying 17 types of taxes, manufacturers and consumers must comply with the GST tax laws, which can be viewed by clicking this link.
Simple Online Procedure for Filing Tax Returns- Filing GST returns is effortless and can be handled by any computer-savvy business owner.
Transparency and Ease of Doing Business- Everything is transparent, as the tax structure is clear and easy to understand. This reduces red-tapism and the scope for corruption and encourages businesses to pay their taxes honestly.
SGST Rates of different commodities
Household necessities like coffee, tea, spices, edible oil, and sugar- 2.5%
Life-saving drugs, coal, and Indian sweets- 2.5%
Hair oil, soap and toothpaste, Capital goods, and Industrial intermediaries- 9%
Processed Food and computers- 6%
Luxury items, premium cars, and consumer durables like AC and refrigerators, cigarettes, and aerated drinks- 14%
Difference between CGST and SGST
Regarding the types of GST, there is a difference between CGST and SGST.
The share of tax revenue under CGST is for the central government, and the allocation of tax revenue under SGST is for the state government.
Taxes under CGST are Central Excise Duty, Central Sales Tax CST, and Service Tax, whereas taxes under SGST are State Sales Tax, VAT, Luxury Tax, and Entertainment Tax.
Conclusion
With this blog, we will give an overview of SGST in India. If you are a business owner, accountant, or someone who wants to start a business of their own, now is the best time to learn about the GST Billing Software.
Eazybills is considered a premium accounting software for GST compliance. This online GST software carries various features to allow for easy alliance between accountants and employees. Eazybills is easy to use and will keep you on track for being GST compliant.
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