What is SGST?
SGST stands for State Goods and Services Tax. Each state levies it under its own SGST Act on supplies made within that state. It is always charged together with CGST, and the two split the applicable rate equally. In union territories without their own legislature, UTGST takes the place of SGST.
Why it matters for exporters
SGST has no place on an export invoice. Exports of services are zero-rated under the IGST Act: you either issue the invoice under LUT with no tax, or charge IGST and claim a refund. If a foreign client's invoice shows SGST, it suggests either a template error or that the supply fails one of the export conditions in Section 2(6), for instance because the place of supply is actually in India.
SGST still matters to most exporters, because many also sell to Indian clients in their own state. Your GSTIN is state-specific (the first two digits are the state code), and intra-state sales from that registration carry CGST plus SGST. The input SGST you pay on local costs, such as office rent and services, can feed into your input tax credit, which zero-rated exporters may be able to get refunded. Use the GST invoice generator for domestic bills.
Example
Saffron Events, registered in Rajasthan, organises a corporate offsite for a Jaipur company and bills ₹2,50,000 plus 9 percent CGST and 9 percent SGST. It also plans a conference abroad for a German client but finds, after advice, that the place of supply for that event may fall outside India. It confirms the treatment with its CA before invoicing.
Common confusion
The tax a client in another Indian state pays is IGST, not SGST. SGST applies only when supplier and place of supply share a state. The guide to CGST, SGST or IGST covers the cases.