Any business offering sale of goods with annual turn over of 40 lacs or service with annual
turn over of 20 lacs would require the registration for GST and have a valid GST Number.
We help you get a Secure GSTIdentification Number.
We make it easy for you to get your GSTfrom the comfort of your own home.
We will file your returns and complete all othercompliances as and when required.
State Goods and Service Tax or SGST refers to the tax levied by the state government on the transaction of goods and services. The tax that is collected under the head SGST will be payable to the state. Hence, SGST is levied on the intrastate supplies of both the services and goods. It is responsible for the state government and will be governed by the SGST Act. In SGST, the taxes like VAT, state sales tax, entertainment tax that unless or until it is levied by the local bodies, gambling, and betting, lottery tax, and surcharges are connected and related to the supply of goods and services that are included in the SGST.
Elimination of multiple indirect taxes is one of the benefits of CGST. All taxes that are levied will not be in the line, i.e prevailing taxes like sales tax, turnover tax, service tax, etc, will come under a general tax called GST (Good and Service Tax).
GST helps the common man save more money and reduce the price of goods and services. So, it is expected that the price of fast-moving consumer goods products, cinema tickets, small tickets, electrical products, etc will be reduced.
GST brings together the tax concept for the whole country, and no separate concept is followed for states. So, this concept has the same format among all other states and is highly beneficial for interstate business.
GST is highly beneficial for businessmen. So, tax filing, compliance, and documentation tasks are very easy for business professionals. Additionally, return filing, tax payment, and refund process will be easy and trouble-free.
GST is applicable for all stages of business from manufacturing to consumption. Further, it provides tax credit benefits at every stage. In GST, you will have tax credit advantage and tax will be handled on margin price only. Therefore, it decreases the cascading effect of tax thereby decreasing the cost of goods.
It is expected that the demands of products will increase along with supply, as GST will reduce the cost of the product.
The State Goods and Services Act was enacted for levy and tax collection on the intra-state supply of goods and services. Hence, it is governed by the state government. The state GST Act is applicable all over India including the states of Jammu and Kashmir. Jammu and Kashmir will approve the levy of GST in its State assembly. This is done with the special powers under the constitution. If this is completed, GST will be introduced in that particular state.
The SGST Act can only start from a date that will be notified by the state government in the official gazette, which is from the fixed date. It is noted that different provisions apply to different states that are to be notified.
Under former taxation laws, the state government levied taxes on the manufacture of goods in the form of central excise duty, interstate sale of goods in the form of central sales tax, certain services that provide in the form of service tax.
Likewise, the state government levy tax on retail in the form of value-added tax, purchase tax, luxury tax, and entry of goods in the state. Moreover, there are multiple types of taxes that are levied on the same supply chain.
Under GST management, taxes are levied on all-time sales. For intrastate deals, both central Goods and Service and state Goods and services will be levied. Inter-state sales are liable to integrated GST. There are many sections and scheduled rules and regulations of SGST. The common rules to be maintained in SGST are as follows:
State GST is one of the 3 classifications under the Goods and Service Tax such as IGST, CGST, and SGST. It has the concept of one tax one nation. SGST comes under State Goods and Service Tax Act 2016.
SGST charges on the movement of goods and services of standard products and services that can be improved from time to time by a separate body. The revenue collected supporting SGST is for the state. However, input tax credit on SGST is to states, and such input tax could be appropriated only against the payment of State GST.
No, there are some differences between the central GST and State GST. The only difference is the taxes are levied on the bases of state and central government. The differences are as follows:
|Standard form||State Goods and Service Tax||Central Goods and Service Tax|
|Taxes that are included||In SGST, the taxes like VAT, state sales tax, entertainment tax that unless or until it is levied by the local bodies, gambling, and betting, lottery tax, and surcharges are connected and related to the supply of goods and services that are included.||Under former taxation laws, the central government levied taxes on the manufacture of goods in the form of central excise duty, interstate sale of goods in the form of central sales tax, certain services that provide in the form of service tax.|
|Share of tax revenue||It is done based on the state government’s decision||It is done based on the central government’s decision|
|Mechanism of usage of credits||A merchant or seller can use input tax credit against SGST against SGST or IGST. The credit of SGST cannot be applied against CGST.||A merchant or seller can use input tax credit against CGST against CGST or IGST. The credit of CGST cannot be applied against SGST.|
Major documents required for SGST are PAN card, business registration proof, Identification cards, passport size photos, address proof of the individual, business address proof, and bank account records. Your bank statement can be used for verification. Further, verification includes the cancelled cheque or an extract from your passbook. Additionally, through address verification, electricity bill, rent agreement, purchase documents, property tax statement, etc can be verified.
A society or club wants to give the following GST filing documents to make the process and obtain GSTIN.
Vakilsearch is India’s largest professional platform of lawyers, chartered accountants, and company secretaries-with years of experience behind. We execute legal work for over 1000 companies and LLPs every month, by leveraging our tech capabilities, and the expertise of our team of legal professionals.
With a team of over 300 experienced business advisors and legal professionals, you are just a phone call away from the best in legal services.
We provide access to reliable professionals and coordinate with them to fulfil all your legal requirements. You can also track the progress on our online platform, at all times.
By handling all the paperwork, we ensure a seamless interactive process with the government. We provide clarity on the incorporation process to set realistic expectations.