MAXIMUM RATES IN GST

28%

For all Intra-Union territory transactions- CGST + UTGST will be levied

For all Inter-Union territory or Union territory to other state IGST will be levied

1.    Same Union Territory transaction

x  is a company registered in Chandigarh and supplying Hand tools like Pliers and Files worth ₹ 1,00,000 to y Pvt Ltd in Chandigarh only. In this case transaction is happening within the same Union Territory and applicable GST on hand tools is 18%.  As we can see in the example above, since place of supply and place of receipt is both inside the Union territory Chandigarh, CGST and UTGST have been applied separately. Had this transaction happened Intra-state or Intra-semistate, SGST would have been applicable instead of UTGST.

2.    Different State/Semi-State/ Union territory transaction

x has acquired a new customer Garuda steel in Mumbai and needs to supply the same Hand tools worth ₹ 1,00,000 to z Steel.

In the above example, transaction has happened from a Union territory to a different state. Hence, only IGST is applicable.