Question

State how the GST rates will be applicable if CGST is 9%, SGST is 9% and IGST 18% in each of the following situations: 1. Goods worth ` 10,000 is sold by a Manufacturer 1 in Maharashtra to a Dealer A in Maharashtra. 2. Dealer A sells goods worth ` 25,000 to Dealer B in Gujarat. 3. Dealer B sells goods to Sunita in Gujarat worth ` 30,000. 4. Sunita sell goods to Ravindra in Rajasthan worth ` 65,000.

Answer 1

As we know that,

Given :

The CGST = 9%

The SGST = 9%

so let us,

$GST = CGST + SGST$

1. Goods worth  10,000 are sold by a Manufacturer 1 in Maharashtra to a Dealer A in Maharashtra.

 CGST = 9÷100×10000

 $= 900$

SGST = 9÷100×10000

 $= 900$

  GST = CGST + SGST

$= 900 + 900$

 $= 1800$

2. Dealer A sells goods worth ` 25,000 to Dealer B in Gujarat.

CGST = 9÷100×25000

 $= 2250$

SGST = 9÷100×25000

 $= 2250$

 $GST = CGST + SGST = 2250 + 2250 = 4500$

3. Dealer B sells goods to Sunita in Gujarat worth 30,000.

so,

CGST = 9÷100×30000

$= 2700$

SGST = 9÷100×30000

 = 2700

GST = CGST + SGST

$= 2700+2700$  

$= 5400$

4. Sunita sells goods to Ravindra in Rajasthan worth 65,000.

CGST = 9÷100×65000

$CGST = 5850$

SGST = 9÷100×65000

 $SGST = 5850$

$GST = CGST + SGST$

$= 5850+5850$

Hence, GST    $= 11700$

Answer 2

CGST and SGST applicable for Transactions with in the same states. IGST is applicable for interstate transactions.

GST

• GST is goods and service Tax
• When transaction happen with in the same state then there are two parts of GST :  
• CGST = SGST = GST/2
• CGST: Central goods and service tax
• SGST: State goods and service tax
• When transaction happen in between 2 different states then IGST is Applicable
• IGST: Interstate goods and service tax
• GST Common rates are 5% , 12% , 18% and 28%

1. Goods worth  10,000 is sold by a Manufacturer 1 in Maharashtra to a Dealer A in Maharashtra.

Both Parties are in same state Hence CGST and SGST will be applicable

CGST = (9/100) 10000 = 900

SGST = (9/100) 10000 = 900

2. Dealer A sells goods worth ` 25,000 to Dealer B in Gujarat.

Dealer A is in Maharashtra. and Dealer B in Gujarat.

Hence Interstate, so IGST applicable

IGST = (18/100) 25000 = 4500

3. Dealer B sells goods to Sunita in Gujarat worth   30,000.

Dealer B in Gujarat.  Sunita in Gujarat

Both Parties are in same state Hence CGST and SGST will be applicable

CGST = (9/100) 30000 = 2700

SGST = (9/100) 30000 = 2700

4. Sunita sell goods to Ravindra in Rajasthan worth  65,000.

 Sunita in Gujarat  and Ravindra in Rajasthan

Hence Interstate, so IGST applicable

IGST = (18/100) 65000 = 11700