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CA Intermediate · Taxation · Charge of GST

Sundaram Traders, Chennai, a registered person, supplies goods to a buyer in Chennai (same State) for a taxable value of Rs 2,00,000. The goods attract GST at 18%. Which of the following correctly states the tax payable on this supply?

The supply is intra-State, so GST of 18% on Rs 2,00,000, which is Rs 36,000, is split equally into CGST of Rs 18,000 and SGST of Rs 18,000. IGST is levied only on inter-State supplies, and each head is levied at half the total rate.

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

Explanation

An intra-State supply attracts CGST and SGST (or UTGST) in equal halves. Total GST is 18% of 2,00,000 = 36,000, so CGST is 9% = 18,000 and SGST is 9% = 18,000. Charging the full 18% under each head double-counts the tax, and IGST applies only to inter-State supplies.

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