CA Intermediate · Taxation · GST in India - An Introduction
Mehta Traders of Surat (Gujarat) sells goods to Rao Stores of Pune (Maharashtra). Which tax(es) will be levied on this supply under the GST structure?
Only IGST is levied. The goods move from Gujarat to Maharashtra, which makes it an inter-State supply. IGST is charged on inter-State supplies and collected by the Centre; CGST and SGST are levied together only on intra-State supplies.
- ACGST and SGST of Gujarat
- BCGST and SGST of Maharashtra
- CIGST onlyCorrect
- DIGST and CGST both
Explanation
The supply is from Gujarat to Maharashtra, so it is an inter-State supply. Inter-State supplies attract IGST, collected by the Centre and apportioned to the destination State. CGST and SGST apply only to intra-State supplies, so options A, B and D are wrong.
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