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Glossary
Central GST is the component of GST collected by the central government on intra-state supplies of goods and services.
When you buy within your state, half the GST goes to the central government as CGST.
Intra-state transaction splits GST rate equally between CGST and SGST. Revenue shared per GST Council recommendations. Input tax credit of CGST usable against CGST and IGST liabilities per set-off rules.
₹10,000 laptop purchase in Maharashtra attracts 18% GST: ₹900 CGST + ₹900 SGST = ₹1,800 total GST on invoice.
CGST+SGST on intra-state sales. IGST alone on inter-state sales, later apportioned to states via settlement mechanism.
Generally CGST credit offsets CGST first, then IGST. Cross-utilisation rules specified in GST law — SGST credit cannot offset CGST directly.
Collected by Centre; portion may be devolved to states per finance commission and GST compensation arrangements.