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CA Intermediate · Taxation · Charge of GST

Sharma Traders, Jaipur (registered, turnover above the threshold), supplies only taxable goods and is not eligible for composition. Its Rajasthan-based customer is also in Jaipur. The goods are supplied at a value of Rs 2,00,000 and attract GST at 18%. Which of the following correctly states the tax charged on this supply?

CGST Rs 18,000 and SGST Rs 18,000 are charged. The supplier and customer are both in Rajasthan, so the supply is intra-State. Total GST at 18% on Rs 2,00,000 is Rs 36,000, divided equally between Centre and State. IGST would apply only to inter-State supply.

  1. AIGST of Rs 36,000
  2. BCGST Rs 18,000 and SGST Rs 18,000Correct
  3. CCGST Rs 36,000 only
  4. DSGST Rs 36,000 only

Explanation

This is an intra-State supply, so CGST and SGST apply, each at half the rate. 18% of Rs 2,00,000 is Rs 36,000, split into CGST 9% = Rs 18,000 and SGST 9% = Rs 18,000. IGST is wrong because it applies only to inter-State supplies.

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