Illustration 4: M/s Vinod & Company of Karnataka, who is the input service provider, charges Rs. 5,000 from M/s Rao company of Gokak, who is the output service provider
Illustration 4: M/s Vinod & Company of Karnataka, who is the input service provider, charges Rs. 5,000 from M/s Rao & company of Gokak, who is the output service provider. M/s Rao & company further provides service to Krishna of Pune. Compute amount of tax collected as CGST and SGST by the central and state government respectively. Assume GST is 18%. Answer This scenario involves two transactions within the Goods and Services Tax (GST) framework, with a specific focus on where the services are provided and received to determine the type of GST applicable. The first transaction takes place between M/s Vinod & Company, located in Karnataka, and M/s Rao & Company, situated in Gokak. It's important to recognize that Gokak is also within the state of Karnataka. Since both the input service provider (M/s Vinod & Company) and the output service provider (M/s Rao & Company) are located in the same state, this transaction qualifies as an intra-state supply. For i...