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CA Intermediate · Taxation · Charge of GST

Kaveri Traders, a registered supplier in Pune (Maharashtra), supplies readymade garments worth ₹4,00,000 (excluding tax) to a registered dealer in Nashik (Maharashtra). The applicable GST rate is 12% (CGST 6% + SGST 6%). What is the CGST payable on this supply?

CGST payable is ₹24,000. The supply is within Maharashtra, so tax is split equally between CGST and SGST, each at 6% of ₹4,00,000. Charging the full 12% as CGST would be wrong because half of the tax belongs to the State.

  1. A₹48,000
  2. B₹24,000Correct
  3. C₹12,000
  4. D₹0

Explanation

The supply is intra-State, so CGST and SGST apply at half the rate each. CGST = 4,00,000 × 6% = ₹24,000. The figure ₹48,000 is wrong because it applies the full 12% as CGST and ignores the split with SGST.

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