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CA Intermediate · Taxation · Charge of GST

Sharma Traders, Jaipur, a registered regular dealer, supplies goods to a buyer in Jaipur (same State) for a taxable value of Rs 2,00,000. The goods are taxable at 18% GST. Which of the following correctly states the tax charged on this supply?

The correct answer is CGST Rs 18,000 and SGST Rs 18,000. The supply is intra-State, so the 18% rate splits equally into 9% CGST and 9% SGST on Rs 2,00,000. IGST is levied only on inter-State supplies.

  1. ACGST Rs 18,000 and SGST Rs 18,000Correct
  2. BIGST Rs 36,000 only
  3. CCGST Rs 36,000 and SGST Rs 36,000
  4. DCGST Rs 18,000 and IGST Rs 18,000

Explanation

An intra-State supply attracts CGST and SGST (or UTGST) in equal halves. Total tax is 18% of 2,00,000 = Rs 36,000, so CGST is 9% = Rs 18,000 and SGST is 9% = Rs 18,000. IGST applies only to inter-State supplies, so the IGST-only option is wrong; Rs 36,000 each doubles the tax.

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