Skip to content

CA Intermediate · Taxation · GST in India - An Introduction

Mehta Traders, a registered dealer in Surat (Gujarat), sells goods to a registered buyer in Jaipur (Rajasthan) and, in the same month, to another registered buyer in Vadodara (Gujarat). Which tax(es) will be charged on these two supplies respectively?

IGST applies to the Jaipur supply because supplier and place of supply lie in different States, making it inter-State. The Vadodara supply is intra-State within Gujarat, so CGST and SGST are charged. Dual GST structure follows the location of supplier and place of supply.

  1. AIGST on the Jaipur supply and CGST plus SGST on the Vadodara supplyCorrect
  2. BCGST plus SGST on both supplies
  3. CIGST on both supplies
  4. DCGST plus UTGST on the Jaipur supply and IGST on the Vadodara supply

Explanation

A supply where the location of supplier and place of supply are in different States is an inter-State supply and attracts IGST. A supply where both are in the same State is intra-State and attracts CGST and SGST. So Jaipur gets IGST and Vadodara gets CGST plus SGST. Charging CGST plus SGST on both ignores the inter-State character of the Jaipur sale.

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