Question

Imagine you are making an intrastate trade on school bags with a GST of 18%. How is it divided between the central and the state governments?

• A. 0% CGST and 18% SGST
• B. 18% CGST and 0% SGST
• C. 9% CGST and 9% SGST
• D. 18% CGST and 18% SGST

Answer 1

The correct option is C 9% CGST and 9% SGST

Whenever there is an intrastate trade, the central and the state governments impose GST. These taxes are shared equally by the central and state governments.
For example, if the GST rate is 18%, then 9% will go to the state government and 9% to the central government.