What is CGST?
CGST stands for Central Goods and Services Tax. It is levied by the central government under the CGST Act, 2017, on intra-state supplies, meaning supplies where the supplier and the place of supply are in the same state. CGST is always charged together with SGST (or UTGST in union territories), with the total rate split equally between the two. A domestic invoice at 18 percent, for example, typically shows 9 percent CGST and 9 percent SGST.
Why it matters for exporters
Exports do not attract CGST. An export of services is zero-rated under the IGST Act, and you either export under LUT without IGST or pay IGST and claim a refund. So if your invoice to a foreign client shows CGST and SGST, something has gone wrong: either the supply does not qualify as an export, or the invoice template is set up for domestic billing.
Many service exporters also bill Indian clients, so they handle CGST and SGST on domestic invoices and zero-rating on export invoices side by side. Keeping separate templates avoids mistakes. Our GST invoice generator calculates CGST and SGST for domestic bills, while the export invoice generator applies LUT wording for exports.
Example
Lotus Digital Pvt Ltd, registered in Tamil Nadu, invoices a Chennai client ₹1,00,000 plus 9 percent CGST (₹9,000) and 9 percent SGST (₹9,000), totalling ₹1,18,000. In the same month it invoices a Malaysian client MYR 20,000 under LUT with no GST. Only the Malaysian invoice is listed on the EDF.
Common confusion
CGST is not "central tax on everything". Inter-state supplies attract IGST instead, not CGST plus SGST. If you are unsure which applies, read CGST, SGST or IGST. Tax rates and treatment for your service should be confirmed with your CA.