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CA Intermediate · Taxation · GST in India - An Introduction

Mehta Traders, a registered dealer in Surat, supplies goods to a buyer in Jaipur. The goods move from Gujarat to Rajasthan. Under the GST framework, which tax(es) will be levied on this supply?

IGST alone is levied because the goods move from Gujarat to Rajasthan, which makes it an inter-State supply. The Centre collects it and the State share is passed to Rajasthan, the destination State. CGST and SGST apply only when the supply is intra-State.

  1. ACGST of Gujarat and SGST of Rajasthan
  2. BIGST only, collected by the Centre and apportioned to Rajasthan as the destination StateCorrect
  3. CCGST and SGST of Gujarat
  4. DCGST and IGST together

Explanation

A supply of goods from one State to another is an inter-State supply, so only IGST is levied. IGST is collected by the Centre and the State share goes to the State of consumption. CGST plus SGST applies only to intra-State supplies.

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