Full formGovernment & Exams
CGSTstands forCentral Goods and Services Tax
Full Form of CGST
What is CGST?
CGST, or Central Goods and Services Tax, is one of the three components of the Goods and Services Tax (GST) system implemented in India on July 1, 2017. It is levied by the Central Government on intra-state supplies of goods and services. Under the GST framework, the tax on every intra-state transaction is divided equally between the Centre and the state, with CGST representing the central portion. The revenue collected from CGST goes to the Central Government, while the State Goods and Services Tax (SGST) portion goes to the respective state. CGST applies to all transactions where the supplier and recipient are located within the same state, including e-commerce and small businesses. It is governed by the CGST Act, 2017, and is administered by the Central Board of Indirect Taxes and Customs (CBIC). Understanding CGST is crucial for businesses, tax practitioners, and students appearing for competitive exams like UPSC, SSC, or CA, as it forms the backbone of India's indirect tax system, replacing older taxes like Central Excise Duty and Service Tax.
CGST का फुल फॉर्म
केंद्रीय वस्तु एवं सेवा कर
Example
On the invoice, the tax is split as 9% CGST and 9% SGST, making a total GST of 18% on the sale of the laptop within Delhi.
CGST — frequently asked questions
What is the full form of CGST?
The full form of CGST is Central Goods and Services Tax.
What is the difference between CGST and SGST?
CGST is levied by the Central Government on intra-state supplies, while SGST is levied by the State Government. Both are equal for the same transaction.
How is CGST calculated?
CGST is calculated as a percentage of the taxable value of goods or services, as specified under GST rate slabs (e.g., 5%, 12%, 18%, 28%), and it is equal to the SGST rate for intra-state supplies.