CA Intermediate · Taxation · GST in India - An Introduction
Meera Traders, a registered dealer in Pune (Maharashtra), sells goods to a registered dealer in Indore (Madhya Pradesh). The goods are moved from Pune to Indore, and the invoice shows a taxable value of Rs 2,00,000 with GST at 18%. Which tax or taxes will be levied on this supply?
IGST of Rs 36,000 is levied. The goods move from Maharashtra to Madhya Pradesh, which is an inter-State supply, and IGST at 18% on Rs 2,00,000 equals Rs 36,000. CGST and SGST apply only when the supply is within one State.
- ACGST of Rs 18,000 and SGST of Rs 18,000
- BIGST of Rs 36,000Correct
- CCGST of Rs 36,000 only
- DIGST of Rs 18,000 only
Explanation
Supply of goods from Maharashtra to Madhya Pradesh is an inter-State supply, so IGST applies. IGST = 18% of 2,00,000 = Rs 36,000. CGST plus SGST (9% each) applies only to intra-State supplies, so option A is wrong even though its total equals Rs 36,000.
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