---
title: "State GST (SGST): Meaning, Rate & Working | Model Diplomat"
description: "State GST (SGST) is the state's share of India's GST on intra-state supply, levied alongside CGST. See how it differs from IGST and where the revenue goes."
url: "https://modeldiplomat.com/learn/glossary/state-gst-sgst"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- State GST (SGST) is the component of India's Goods and Services Tax levied and collected by a state government on intra-state supplies of goods and services.
- How does SGST differ from IGST?
- Can input tax credit of SGST be set off against CGST?
- What is the constitutional basis for SGST?
- What happened to GST compensation for states after 2022?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

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## Timeline

1. 1 July 2017

   State GST (SGST) is the levy imposed by a state or Union Territory legislature on the intra-state supply of goods and services under India's dual Goods and S…

2. 30 June 2022

   The compensation arrangement under the GST (Compensation to States) Act, 2017 guaranteed states a 14 percent annual revenue growth for five years to , funded…

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When a Mumbai retailer sold furniture to a customer within Maharashtra in 2023 at an 18 percent GST rate, the invoice split the tax into 9 percent CGST credited to the Centre and 9 percent SGST credited to the Maharashtra state exchequer.

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