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CA Intermediate · Taxation · Charge of GST

Mehta Enterprises, Surat (Gujarat), a registered supplier, sells goods of taxable value Rs 5,00,000 to a registered dealer in Jaipur (Rajasthan). The applicable GST rate is 12%. Which of the following correctly states the tax levied?

IGST of Rs 60,000 is levied. The supply moves from Gujarat to Rajasthan, so it is inter-State, and IGST applies at the full 12% on Rs 5,00,000. CGST and SGST are not charged on inter-State supplies.

  1. ACGST Rs 30,000 and SGST Rs 30,000
  2. BIGST Rs 60,000Correct
  3. CCGST Rs 30,000 and IGST Rs 30,000
  4. DIGST Rs 30,000

Explanation

Supply from Gujarat to Rajasthan is an inter-State supply, so only IGST is levied at the full rate. IGST = 12% x 5,00,000 = Rs 60,000. Option A applies the intra-State split wrongly.

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