Skip to content

CA Intermediate · Taxation · GST in India - An Introduction

Meghna Traders, a registered dealer in Pune, supplies goods to a buyer in Indore, Madhya Pradesh. Under the GST structure, the transaction is an inter-State supply. Which of the following taxes will be levied on this supply?

Only IGST is levied. A supply from Pune in Maharashtra to Indore in Madhya Pradesh moves between two States, so it is inter-State. CGST and SGST apply together to intra-State supplies, while IGST alone applies to inter-State supplies, and the Centre collects it.

  1. ACGST and SGST
  2. BIGST onlyCorrect
  3. CCGST and IGST
  4. DSGST and IGST

Explanation

Supply of goods from Maharashtra to Madhya Pradesh is an inter-State supply, so only IGST is levied, and it is collected by the Centre and apportioned to the destination State. CGST and SGST together apply only to intra-State supplies, which is why the option with both is wrong.

Did you get it right without looking?

One question tells you little. A timed set on GST in India - An Introduction shows your real accuracy, how long you take and where you lose marks.

Practise GST in India - An IntroductionFree diagnostic mock

More GST in India - An Introduction questions