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CA Intermediate · Taxation · GST in India - An Introduction

Kavita Textiles, a registered supplier in Surat (Gujarat), sells goods to a customer in Jaipur (Rajasthan) and, in the same month, to a customer in Vadodara (Gujarat). Which statement correctly describes the taxes leviable?

IGST applies to the Jaipur supply and CGST plus SGST apply to the Vadodara supply. Location of supplier in Gujarat and place of supply in Rajasthan makes the first transaction inter-State, while the second has both locations in Gujarat and is therefore intra-State.

  1. AIGST on the Jaipur supply and CGST plus SGST on the Vadodara supplyCorrect
  2. BCGST plus SGST on both supplies, as the supplier is in Gujarat
  3. CIGST on both supplies, as the supplier is a registered person
  4. DSGST of Gujarat on the Jaipur supply and CGST on the Vadodara supply

Explanation

Supplier in Gujarat and place of supply in Rajasthan make the first supply inter-State, which attracts IGST. Surat to Vadodara is within Gujarat, so it is intra-State, attracting CGST and SGST. Registration status does not change the character of a supply.

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