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CA Intermediate · Taxation · GST in India - An Introduction

Mehta Enterprises, a registered dealer in Surat (Gujarat), made the following supplies in a month: (i) intra-State supply of goods in Gujarat Rs 6,00,000 at 18% GST; (ii) inter-State supply of goods to Rajasthan Rs 4,00,000 at 18% GST. All values exclude tax. Which of the following correctly states the total GST liability and its split by tax type?

CGST Rs 54,000, SGST Rs 54,000 and IGST Rs 72,000, totalling Rs 1,80,000. The intra-State supply of Rs 6,00,000 at 18% gives Rs 1,08,000 split equally into CGST and SGST, while the inter-State supply of Rs 4,00,000 at 18% attracts IGST of Rs 72,000.

  1. ACGST Rs 54,000, SGST Rs 54,000, IGST Rs 72,000; total Rs 1,80,000Correct
  2. BCGST Rs 54,000, SGST Rs 54,000, IGST Rs 0; total Rs 1,08,000
  3. CCGST Rs 90,000, SGST Rs 90,000, IGST Rs 0; total Rs 1,80,000
  4. DCGST Rs 1,08,000, SGST Rs 0, IGST Rs 72,000; total Rs 1,80,000

Explanation

Intra-State: 18% of 6,00,000 = 1,08,000, split equally as CGST 54,000 and SGST 54,000. Inter-State: 18% of 4,00,000 = 72,000 as IGST. Total = 1,08,000 + 72,000 = 1,80,000. Treating the inter-State supply as CGST plus SGST, or ignoring it, gives wrong splits.

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