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CA Intermediate · Taxation · GST in India - An Introduction

Meera Textiles, registered in Surat (Gujarat), is a manufacturer. It sells goods worth Rs 5,00,000 to a registered dealer in Jaipur (Rajasthan), and the goods move from Surat to Jaipur. Which GST applies to this supply?

IGST only applies. The goods move from Gujarat to Rajasthan, so the location of the supplier and the place of supply are in different States, making it an inter-State supply, which is taxed under the IGST Act and not under CGST and SGST.

  1. ACGST and SGST of Gujarat
  2. BIGST onlyCorrect
  3. CCGST and SGST of Rajasthan
  4. DCGST of Gujarat and IGST

Explanation

The supplier is in Gujarat and the place of supply is Rajasthan, so this is an inter-State supply. Inter-State supplies attract IGST only. CGST plus SGST applies to intra-State supplies, and no State tax of Rajasthan is levied on the supplier's tax.

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