Skip to content

CA Intermediate · Taxation · Charge of GST

Rohan Textiles, a registered manufacturer in Ludhiana, supplies goods to a distributor in Ludhiana. Transaction value is Rs 10,00,000 and GST rate on goods is 5%. It also supplied goods in the same invoice to a buyer in Delhi: Rs 4,00,000 at 5%. Both are taxable supplies. What is the total CGST plus SGST/UTGST plus IGST liability for the month?

Total liability is Rs 70,000. The Ludhiana intra-State supply of Rs 10,00,000 at 5% gives Rs 50,000 as CGST and SGST together, and the Delhi inter-State supply of Rs 4,00,000 at 5% gives Rs 20,000 as IGST. Adding them gives Rs 70,000.

  1. ARs 70,000Correct
  2. BRs 50,000
  3. CRs 35,000
  4. DRs 20,000

Explanation

Ludhiana supply: 5% x 10,00,000 = Rs 50,000 as CGST 25,000 plus SGST 25,000. Delhi supply is inter-State: 5% x 4,00,000 = Rs 20,000 IGST. Total = 50,000 + 20,000 = Rs 70,000. Rs 50,000 omits the inter-State supply.

Did you get it right without looking?

One question tells you little. A timed set on Charge of GST shows your real accuracy, how long you take and where you lose marks.

Practise Charge of GSTFree diagnostic mock

More Charge of GST questions