Question

On certain articles if the rate of CGST is $9\% $ then what is the rate of SGST? And what is the rate of GST?

Answer 1

Hint:We know that the GST is the sum of both the rate of SGST and CGST, and the rate of SGST and CGST are equal. Use these conditions to find the rate of SGST and GST as per available transactions.

Complete step-by-step answer:
We know that SGST (State Goods and Service Tax) and CGST (Central Goods and Service Tax) are the taxes on Intra-State supply of goods or services. These taxes are applicable when the location of the supplier and the place of are in the same state.
In Intra-State transactions, a seller has to collect both CGST and SGST from the buyer.
The CGST gets deposited with the Central Government and SGST gets deposited with the State Government.
The rate of SGST and CGST are equal and the rate of CGST is given as $9\% $.
So, the rate of SGST will also be $9\% $.
The formula to calculate the rate of GST is written as,
${\text{Rate}}\;{\text{of}}\;{\text{GST}} = {\text{Rate}}\;{\text{of}}\;{\text{SGST}} + {\text{Rate}}\;{\text{of}}\;{\text{CGST}}$
Substitute $9\% $for rate of SGST, and $9\% $for rate CGST in the above formula to find rate of GST.
$
  {\text{Rate}}\;{\text{of}}\;{\text{GST}} = {\text{Rate}}\;{\text{of}}\;{\text{SGST}} + {\text{Rate}}\;{\text{of}}\;{\text{CGST}} \\
   = {\text{9% + 9% }} \\
   = {\text{18% }} \\
 $
Therefore, the rate of SGST is $9\% $ and the rate of GST is $18\% $.

Note:The relation between SGST and CGST must be known and it should be used carefully, then use the relation between the GST, SGST and CGST.Students should remember the definitions and formula to calculate GST i.e ${\text{Rate}}\;{\text{of}}\;{\text{GST}} = {\text{Rate}}\;{\text{of}}\;{\text{SGST}} + {\text{Rate}}\;{\text{of}}\;{\text{CGST}}$ and remember the rate of SGST and CGST are equal.