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CA Intermediate · Taxation · Charge of GST

Rohan Traders, Pune (registered, turnover above threshold) sold goods to Meera Stores, Pune, for Rs 2,00,000 (taxable value) at a GST rate of 18%. Both are in Maharashtra. What is the total GST charged on this supply and how is it levied?

Total GST is Rs 36,000, levied as Rs 18,000 CGST and Rs 18,000 SGST, because the supplier and place of supply are both in Maharashtra. An intra-State supply attracts CGST and SGST at half the rate each, whereas IGST applies to inter-State supplies.

  1. ARs 36,000 as IGST
  2. BRs 18,000 as CGST and Rs 18,000 as SGSTCorrect
  3. CRs 36,000 as CGST only
  4. DRs 36,000 as SGST only

Explanation

The supply is intra-State, so tax is levied as CGST and SGST in equal halves. 18% of Rs 2,00,000 = Rs 36,000, split 9% each = Rs 18,000 CGST and Rs 18,000 SGST. IGST applies only to inter-State supplies.

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