CMA Intermediate · Direct and Indirect Taxation · Introduction to GST Law
India follows a dual GST model. A dealer in Pune sells goods to a buyer in Nagpur, both in Maharashtra. Which taxes are levied on this supply?
CGST and SGST (or UTGST in a Union Territory) apply. The supply is intra-State because supplier and recipient are in Maharashtra, so the Centre and State each levy their tax on the same value. IGST is reserved for inter-State supplies, imports and exports.
- ACGST and SGST/UTGSTCorrect
- BIGST only
- CCGST and IGST
- DSGST only
Explanation
Both locations are in the same State, so the supply is intra-State. Under the dual model, the Centre levies CGST and the State levies SGST on the same transaction. IGST applies only to inter-State supplies, imports and exports, so options with IGST are wrong.
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