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CA Intermediate · Taxation · Charge of GST

Sundaram Traders of Coimbatore (Tamil Nadu) supplies goods worth Rs 2,00,000 (excluding tax) to a dealer in Kochi (Kerala). The goods are taxable at 18% GST. What is the correct tax treatment?

IGST of Rs 36,000 is payable. The supplier is in Tamil Nadu and the place of supply is Kerala, so the supply is inter-State. IGST is levied at the full 18% on Rs 2,00,000, not split into CGST and SGST.

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

Explanation

The supply is an inter-State supply because the supplier is in Tamil Nadu and the place of supply is in Kerala. IGST at 18% applies: 2,00,000 x 18% = Rs 36,000. Option A is wrong because CGST plus SGST is levied only on intra-State supplies; option D halves the rate wrongly.

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