CA Intermediate · Taxation · GST in India - An Introduction
Kaveri Textiles, Surat (Gujarat), sells fabric to a registered dealer in Pune (Maharashtra) for a taxable value of Rs 2,00,000. The applicable GST rate is 12% in total. Which is the correct tax treatment?
IGST of Rs 24,000 is payable. The goods move from Gujarat to Maharashtra, making it an inter-State supply, so IGST is charged at the full 12% on Rs 2,00,000. The CGST plus SGST split applies only to intra-State supplies.
- AIGST of Rs 24,000Correct
- BCGST Rs 12,000 and SGST Rs 12,000
- CCGST Rs 24,000 only
- DIGST Rs 12,000
Explanation
Supply from Gujarat to Maharashtra is inter-State, so IGST applies at the full rate of 12%: 2,00,000 x 12% = Rs 24,000. Splitting into CGST and SGST of Rs 12,000 each is the intra-State treatment and is wrong here. Rs 12,000 IGST uses half the rate.
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