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.
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)
CAclubindia
