CS Executive · Tax Laws and Practice · Concept of Indirect Taxes at a Glance
A dealer in Pune sells goods to a buyer in Nagpur, both in Maharashtra. Which GST components are levied on this transaction?
CGST and SGST are levied. The supply is intra-State, since supplier and place of supply are both in Maharashtra, so the Centre collects CGST and the State collects SGST at equal rates. IGST applies only to inter-State supplies and imports.
- AIGST only
- BCGST and SGSTCorrect
- CCGST and IGST
- DSGST and UTGST only
Explanation
An intra-State supply within Maharashtra attracts CGST collected by the Centre and SGST collected by the State, usually at equal rates. IGST applies to inter-State supplies, so IGST alone is wrong. UTGST applies in Union territories without legislature, not Maharashtra.
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