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CA Intermediate · Taxation · Charge of GST

Mehta Enterprises, Surat (Gujarat), a regular taxpayer, supplied taxable goods worth Rs 5,00,000 (exclusive of tax) to a customer in Pune (Maharashtra), where the place of supply is Pune. GST rate on the goods is 12%. Mehta has opted for no special scheme. What is the tax liability on this supply?

IGST of Rs 60,000 is payable. The supplier is located in Gujarat and the place of supply is Maharashtra, making it an inter-State supply. IGST is charged at the full 12% rate on Rs 5,00,000, not split into CGST and SGST.

  1. ACGST Rs 30,000 and SGST Rs 30,000
  2. BIGST Rs 60,000Correct
  3. CIGST Rs 30,000
  4. DCGST Rs 60,000

Explanation

Supplier in Gujarat and place of supply in Maharashtra make it an inter-State supply, so IGST is levied at the full rate. 12% of Rs 5,00,000 = Rs 60,000. Splitting into CGST and SGST (Rs 30,000 each) is wrong as that applies only to intra-State supplies.

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