CGST (Central GST)

CGST or Central GST is the component of GST that goes to the Central Government. For every intra-state transaction — a sale within the same state — the total GST rate is split equally between CGST and SGST (State GST). For example, if the GST rate on a product is 18%, 9% is CGST collected by the Centre and 9% is SGST collected by the state. CGST is administered by the Central Board of Indirect Taxes and Customs (CBIC) and is deposited to the Consolidated Fund of India. Input tax credit of CGST can be used to set off CGST and IGST liability, but not SGST. This split between Centre and states was designed to ensure both levels of government receive revenue from the same tax base. For inter-state transactions, only IGST applies, and its revenue is later apportioned between the Centre and destination state. CGST covers all registered businesses, from manufacturers to service providers, under the same unified platform.