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CA Intermediate · Taxation · GST in India - An Introduction

Ravi Traders, Pune (Maharashtra) sells goods worth ₹2,00,000 to a buyer in Pune. GST rate is 18%. In a second transaction the same goods worth ₹2,00,000 go to a buyer in Indore (Madhya Pradesh). Considering the nature of levy, which statement is correct for the two sales?

The Pune sale attracts CGST ₹18,000 and SGST ₹18,000, since it is intra-State. The Indore sale attracts IGST ₹36,000, since it is inter-State. Total GST is 18% of ₹2,00,000, which is ₹36,000, split equally into CGST and SGST for intra-State supplies.

  1. AFirst: CGST ₹18,000 and SGST ₹18,000; second: IGST ₹36,000Correct
  2. BFirst: CGST ₹36,000 only; second: IGST ₹36,000
  3. CFirst: CGST ₹18,000 and SGST ₹18,000; second: CGST ₹18,000 and SGST ₹18,000
  4. DFirst: IGST ₹36,000; second: CGST ₹18,000 and SGST ₹18,000

Explanation

Total GST at 18% on ₹2,00,000 is ₹36,000. Intra-State sale in Maharashtra splits equally into CGST ₹18,000 and SGST ₹18,000. Inter-State sale to Madhya Pradesh attracts IGST of the whole ₹36,000. Charging CGST alone ignores the State share.

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