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CA Intermediate · Taxation · Charge of GST

Sharma Traders, a registered dealer in Jaipur (Rajasthan), sells goods worth Rs 4,00,000 (excluding tax) to Gupta Stores, a registered dealer in Jodhpur (Rajasthan). The goods are taxable at 18% GST. Which tax(es) will be levied on this supply, and in what amount?

CGST of Rs 36,000 and SGST of Rs 36,000 are levied. The supplier and the place of supply are both in Rajasthan, making it an intra-State supply. Total GST at 18% on Rs 4,00,000 is Rs 72,000, shared equally between Centre and State.

  1. AIGST of Rs 72,000
  2. BCGST Rs 36,000 and SGST Rs 36,000Correct
  3. CCGST Rs 72,000 only
  4. DSGST Rs 72,000 only

Explanation

Supplier and place of supply are both in Rajasthan, so it is an intra-State supply. GST of 18% on Rs 4,00,000 is Rs 72,000, split equally into CGST Rs 36,000 and SGST Rs 36,000. IGST applies only to inter-State supplies, so option A is wrong.

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