Glossary · GST & Indirect Tax
CGST
Central Goods and Services Tax — the central government's share of GST levied on intra-state transactions.
CGST is governed by the Central GST Act, 2017 and is collected on every intra-state supply of goods or services. Its revenue accrues to the central government. The applicable rate is half of the total GST rate — for example, an 18% intra-state sale splits into 9% CGST and 9% SGST. CGST credit can be used only against IGST and CGST liabilities, not against SGST.
Examples
A shop in Delhi selling goods worth ₹10,000 within Delhi at 18% GST bills 9% CGST = ₹900 and 9% SGST = ₹900, total ₹18,000.