Q.Journalise: Purchased goods worth ₹30,000 for cash from a dealer registered in another state, GST charged @ 18%. Explain why IGST, rather than CGST and SGST, applies here.

Whether GST is split into CGST+SGST or charged wholly as IGST depends purely on where the buyer and seller are located, not on the type of goods.

GST charged on any purchase or sale within India is split into CGST + SGST only when the supplier and the buyer are located in the SAME state (an intra-state supply). When they are in DIFFERENT states (an inter-state supply, as here), the entire tax is charged as a single levy — IGST — at the full rate, instead of two half-rate components; this is purely a geographic test, unrelated to the nature or value of the goods.

Working. IGST = 30,000 × 18% = ₹5,400. Total amount paid = 30,000 + 5,400 = ₹35,400.

Purchases A/c (Real, goods coming in) is debited with the basic value; Input IGST A/c (a recoverable asset, usable as Input Tax Credit) is debited with the GST paid; Cash A/c (Real, going out) is credited with the total amount actually paid.

| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |

|---|---|---:|---:|---:| …

Students sometimes assume IGST is charged 'in addition to' CGST and SGST, or try to split it into two halves like an intra-state transaction — IGST is a single, whole-rate tax that REPLACES the CGST+SGST split entirely for an in …