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Question
If a dealer supplies goods worth ₹ 3,000 to another local dealer with 28% GST, then the tax levied under CGST is ______.
Options
₹ 270
₹ 540
₹ 840
₹ 420
MCQ
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Solution
If a dealer supplies goods worth ₹ 3,000 to another local dealer with 28% GST, then the tax levied under CGST is ₹ 420.
Explanation:
Since the goods are supplied to a local dealer (intra-state transaction), the Goods and Services Tax (GST) is split equally between CGST (Central Goods and Services Tax) and SGST (State Goods and Services Tax).
Total GST = 28% of ₹ 3,000
= `28/100 xx ₹ 3,000`
= ₹ 840
CGST = `"Total GST"/2`
= `(₹ 840)/2`
= ₹ 420
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