Question

Assertion (A): A shopkeeper in Agra sells a mobile phone to a customer in Agra at ₹ 8400. If the rate of GST is 18%, then SGST is ₹ 756.

Reason (R): For any intrastate supply (supply within the state) of goods or services, CGST is levied.

Options

• A is true, R is false

• A is false, R is true

• Both A and R are true

• Both A and R are false

Answer 1

Both A and R are true

Explanation:

18% of ₹ 8,400 = ₹ 1,512 (total GST). For an intra‑state sale GST is split equally into SGST and CGST (each 9%), so SGST = 9% of ₹ 8,400 = ₹ 756. The Reason that CGST is levied on intra‑state supplies i.e., GST is shared between CGST and SGST is true and explains the Assertion.