Skip to content

CA Intermediate · Taxation · Charge of GST

Mehta Textiles, a registered supplier in Surat, sold goods to a registered buyer in Pune for Rs 4,00,000 (exclusive of tax). The applicable GST rate is 12% (CGST 6% + SGST 6% for intra-State supplies). What is the GST payable by Mehta Textiles on this supply?

The supply from Surat to Pune is inter-State, so only IGST at 12% applies. On Rs 4,00,000 the IGST is Rs 48,000. CGST and SGST are not levied on inter-State supplies.

  1. AIGST Rs 48,000Correct
  2. BCGST Rs 24,000 and SGST Rs 24,000
  3. CIGST Rs 24,000
  4. DIGST Rs 96,000

Explanation

Supply from Gujarat to Maharashtra is inter-State, so IGST applies at the combined rate of 12%. IGST = 4,00,000 x 12% = Rs 48,000. Splitting into CGST and SGST is wrong because that applies only to intra-State supplies. Rs 24,000 is a half-rate error.

Did you get it right without looking?

One question tells you little. A timed set on Charge of GST shows your real accuracy, how long you take and where you lose marks.

Practise Charge of GSTFree diagnostic mock

More Charge of GST questions