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CA Intermediate · Taxation · Charge of GST

Gupta Electronics, Delhi (registered, annual turnover Rs 3 crore), supplies goods to Shah Retail, Delhi, at taxable value Rs 4,00,000 at 18%. In the same month it also supplies goods worth Rs 2,00,000 taxable at 5% to a customer in Gujarat. Which total tax is correct and how is it classified?

The correct levy is CGST Rs 36,000, SGST Rs 36,000 and IGST Rs 10,000. The Delhi sale is intra-State at 18% on Rs 4,00,000, giving Rs 72,000 split equally, while the Gujarat sale is inter-State at 5% on Rs 2,00,000, giving Rs 10,000 IGST.

  1. ACGST Rs 36,000, SGST Rs 36,000 and IGST Rs 10,000Correct
  2. BCGST Rs 36,000, SGST Rs 36,000 and no IGST
  3. CIGST Rs 82,000 only
  4. DCGST Rs 36,000 and SGST Rs 36,000 and IGST Rs 20,000

Explanation

Delhi supply: 18% of Rs 4,00,000 = Rs 72,000, so CGST Rs 36,000 and SGST Rs 36,000. Gujarat supply is inter-State: 5% of Rs 2,00,000 = Rs 10,000 IGST. Option C ignores the split; option D uses 10% on the second supply.

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