State how the GST rates will be applicable if CGST is 9%, SGST is 9% and IGST 18% in each of the following situations: Dealer B sell goods to Sunita in Gujarat worth ₹ 30,000.
In this situation, Dealer B sells goods to Sunita within the same state (Gujarat). Since both the seller and buyer are located in the same state, it is an intra-state transaction.
Calculation of GST:
- Value of Goods: ₹ 30,000
- CGST @ 9%: ₹ 30,/100 = ₹ 2,700 (goes to Central Government)
- SGST @ 9%: ₹ 30,/100 = ₹ 2,700 (goes to State Government)
- Total GST: ₹ 2,700 + ₹ 2,700 = ₹ 5,400
IGST is NOT applicable as the transaction is within Gujarat (same state). IGST is charged only on inter-state transactions where goods are transferred from one state to another.
Explanation
This is a 3-mark numerical question. The textbook context clearly establishes that CGST and SGST apply to intra-state transactions (same state), while IGST applies to inter-state transactions. The example in the context shows that when Ramesh in Punjab sells to Seema in Punjab (same state), CGST and SGST are charged. Since Dealer B and Sunita are both in Gujarat, this is an intra-state transaction, so CGST (9%) and SGST (9%) apply, totaling 18% GST split equally between Centre and State.
Solution Steps
Step 1: Identify the nature of transaction - Dealer B (Gujarat) sells to Sunita (Gujarat) = Intra-state transaction
Step 2: Determine applicable taxes - CGST and SGST apply for intra-state; IGST does NOT apply
Step 3: Calculate CGST = ₹ 30,% = ₹ 2,700
Step 4: Calculate SGST = ₹ 30,% = ₹ 2,700
Step 5: Total GST = ₹ 2,700 + ₹ 2,700 = ₹ 5,400