Hello,
Under GST regime, whether GST would be applicable two times as CGST and SGST on a particular item? or the rates which are finalised 5%, 12%, 18% & 28 % is inclusive of CGST and SGST?
Thanking you in advance
CS Nisha Nishit (Practicing Company Secretary) (326 Points)
09 June 2017Hello,
Under GST regime, whether GST would be applicable two times as CGST and SGST on a particular item? or the rates which are finalised 5%, 12%, 18% & 28 % is inclusive of CGST and SGST?
Thanking you in advance
Niharika
(Article assistant)
(38 Points)
Replied 09 June 2017
Yes ... those all rates are inclusive of CGST & SGST.For Example:
Suppose goods worth Rs. 10,000 are sold by manufacturer A in telangana to Dealer B in Telangana. B resells them to trader C in Rajasthan for Rs. 17,500. Trader C finally sells to End User D in Rajasthan for Rs. 30,000.
Suppose CGST= 9%, SGST=9%. Therefore, IGST=9+9=18%
Since A is selling this to B in Telangana itself, it is an intra-state sale and both CGST @ 9% and SGST @ 9% will apply.
B (Telangan) is selling to C (Rajasthan). Since it is an interstate sale, IGST @ 18% will apply.
C (Rajasthan) is selling to D also in Rajasthan. Once again it is an intra-state sale and both CGST @ 9% and SGST @ 9% will apply.
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