Every time Zoho Books calculates GST on an intra-state supply, it splits the tax equally between CGST and SGST. For a 12% GST item, SGST is 6%. For a 28% GST item, SGST is 14%. The SGST amount appears as a separate line on the printed invoice, as required by GST rules. On the accounting side, Zoho Books posts the SGST to a dedicated “SGST Output Tax Payable” liability account, distinct from the CGST and IGST accounts.
When you receive an intra-state vendor bill, the SGST portion records in your “SGST Input Tax Credit” asset account. You can set off SGST ITC against SGST Output Tax Payable (and against IGST liability if SGST ITC exceeds SGST output tax). However, SGST ITC cannot be set off against CGST Output Tax Payable: the cross-utilisation rules under GST are specific. Zoho Books automatically applies these set-off rules in the GST Summary report, showing the correct utilisation sequence.
If your business has GST registrations in multiple states, each state registration has its own SGST. A Gujarat registration has Gujarat SGST; a Maharashtra registration has Maharashtra SGST. In Zoho Books, this is typically managed by having separate organisations for each state registration, each with its own Chart of Accounts and GST accounts. Consolidated reporting is done outside Zoho Books.
SGST (State Goods and Services Tax) is the state government’s share of GST on intra-state supplies, equal to half the total GST rate. It is automatically calculated by Zoho Books when the supplier and recipient are in the same state.
SGST is the state portion of tax on intra-state transactions applied alongside CGST. IGST replaces both CGST and SGST on inter-state transactions. Zoho Books automatically determines which applies based on the parties’ states.
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