CMA Intermediate · Direct and Indirect Taxation · Concept of Indirect Taxes
A registered supplier in Gujarat sells goods worth Rs 2,00,000 (excluding tax) to a registered buyer in Rajasthan. GST on the goods is 18%. What is the tax payable and under which head?
The supply is inter-State, so IGST applies at the full 18% rate. 18% of Rs 2,00,000 is Rs 36,000, payable as IGST. CGST and SGST are not charged on inter-State supplies.
- ARs 36,000 as IGSTCorrect
- BRs 18,000 as CGST and Rs 18,000 as SGST
- CRs 36,000 as CGST only
- DRs 18,000 as IGST
Explanation
Gujarat to Rajasthan is an inter-State supply, so only IGST is charged. IGST = 18% of Rs 2,00,000 = Rs 36,000. The CGST plus SGST option of Rs 9,000 each would be right only for an intra-State supply at 9% + 9%. Rs 18,000 each wrongly applies the full 18% to both heads and also gives a wrong total.
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