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CA Intermediate · Taxation · Charge of GST

Kaveri Industries, Chennai, supplies goods to Mehta Ltd, a registered person in Chennai, for Rs 1,00,000 (excluding GST). The goods attract CGST 9% and SGST/UTGST 9%. Kaveri also supplies the same goods to Joshi Pvt Ltd, a registered person in Hyderabad (Telangana), for Rs 1,00,000. What is the total GST charged on the two supplies together?

The total GST is Rs 36,000: Rs 18,000 on the Chennai supply as CGST and SGST of Rs 9,000 each, and Rs 18,000 IGST on the Hyderabad supply, since inter-State supplies attract IGST at the combined rate of 18%.

  1. ARs 18,000 (intra-State supply only; inter-State is zero-rated)
  2. BRs 36,000, being CGST Rs 9,000 and SGST Rs 9,000 on first supply, and IGST Rs 18,000 on secondCorrect
  3. CRs 36,000, being CGST Rs 18,000 and SGST Rs 18,000 across both supplies
  4. DRs 27,000, being IGST at 9% on the second supply

Explanation

The Chennai supply is intra-State: CGST 9,000 + SGST 9,000 = 18,000. The Hyderabad supply is inter-State, so IGST at 18% (sum of CGST and SGST rates) = 18,000. Total = 36,000. The option splitting all as CGST/SGST ignores that inter-State supplies attract IGST.

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