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CA Intermediate · Taxation · Charge of GST

Anand Sweets (a registered person in Jaipur) supplies only taxable goods and has a rate of 5% on its sweets. Which statement about the levy of GST under section 9 of the CGST Act is correct for its outward supplies?

GST under section 9 is levied on intra-State supplies of goods or services at the notified rate on their transaction value, and ordinarily the supplier pays it unless reverse charge applies. It is a tax on supply, not on profit, manufacture or only cash transactions.

  1. AGST is levied on the transaction value of intra-State supplies of goods or services, and is paid by the supplier unless reverse charge appliesCorrect
  2. BGST is levied on the profit earned on each supply
  3. CGST is levied only on supplies made for cash consideration
  4. DGST is levied on the manufacture of goods, not on their supply

Explanation

CGST/SGST is levied on intra-State supplies of goods or services, on the value determined under section 15, and is normally payable by the supplier. It is not on profit, nor limited to cash, nor on manufacture.

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