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CMA Intermediate · Direct and Indirect Taxation · Concept of Indirect Taxes

Under the GST structure in India, an intra-State supply of goods by a registered dealer in Pune to a customer in Nashik, both in Maharashtra, attracts which combination of taxes?

An intra-State supply, where the supplier's location and the place of supply are in the same State, attracts CGST and SGST, typically in equal parts. IGST is reserved for inter-State supplies, imports and exports, so it does not apply to a Pune to Nashik sale.

  1. ACGST and SGSTCorrect
  2. BIGST only
  3. CCGST and IGST
  4. DSGST and customs duty

Explanation

Where the location of the supplier and the place of supply are in the same State, the supply is intra-State. Tax is then levied as CGST by the Centre and SGST by the State, usually in equal halves. IGST applies only to inter-State supplies, imports and exports, so options with IGST are wrong.

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