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CA Intermediate · Taxation · GST in India - An Introduction

Mehta Traders, a registered dealer in Surat (Gujarat), sold goods worth Rs 4,00,000 (taxable value) to a buyer in Jaipur (Rajasthan), with goods moving from Surat to Jaipur. The GST rate on the goods is 12%. Which tax is leviable on this supply, and what is its amount?

IGST of Rs 48,000 is leviable. The movement of goods from Gujarat to Rajasthan makes the supply inter-State, so IGST applies at the full 12% rate on Rs 4,00,000, instead of the CGST and SGST split used for supplies within a single State.

  1. ACGST Rs 24,000 and SGST Rs 24,000
  2. BIGST Rs 48,000Correct
  3. CCGST Rs 24,000 and IGST Rs 24,000
  4. DIGST Rs 24,000

Explanation

Goods move from Gujarat to Rajasthan, so this is an inter-State supply. IGST is levied at the full rate of 12% on Rs 4,00,000, which is Rs 48,000. Option A applies the intra-State split, which is wrong because the movement crosses State borders. Option D takes only half the rate.

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