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CA Intermediate · Taxation · Charge of GST

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

The correct tax is CGST Rs 18,000 and SGST Rs 18,000. The supply is intra-State, so the 18% rate is split into 9% CGST and 9% SGST on Rs 2,00,000. IGST is levied only on inter-State supplies, so it does not apply here.

  1. ACGST Rs 18,000 and SGST Rs 18,000Correct
  2. BIGST Rs 36,000
  3. CCGST Rs 36,000 and SGST Rs 36,000
  4. DCGST Rs 9,000 and SGST Rs 9,000

Explanation

An intra-State supply attracts CGST and SGST in equal halves. Combined 18% on Rs 2,00,000 is Rs 36,000, so CGST 9% = Rs 18,000 and SGST 9% = Rs 18,000. IGST applies only to inter-State supplies, and Rs 36,000 each would double the tax.

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