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CA Intermediate · Taxation · Charge of GST

Kaveri Textiles, a registered supplier in Surat (Gujarat), supplies readymade garments with a taxable value of Rs 5,00,000 to a registered dealer in Indore (Madhya Pradesh). The applicable GST rate is 12%. Which of the following correctly states the tax payable?

IGST of Rs 60,000 is payable. The supply moves from Gujarat to Madhya Pradesh, making it inter-State, so IGST is levied at the full 12% rate on Rs 5,00,000. CGST and SGST are not charged on inter-State supplies.

  1. ACGST Rs 30,000 and SGST Rs 30,000
  2. BIGST Rs 30,000
  3. CIGST Rs 60,000Correct
  4. DCGST Rs 60,000

Explanation

Supply from Gujarat to Madhya Pradesh is an inter-State supply, so IGST at the full 12% applies. IGST = 12% x 5,00,000 = Rs 60,000. Option A splits the rate as if it were intra-State, which is wrong, and Rs 30,000 uses only 6%.

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