Q.A dealer in Pune sells goods worth Rs 40,000 to a customer in Pune. The GST rate is 18%. Calculate the CGST, SGST, and the total invoice value.

Both parties are in the same city (same state), so this is an intra-state supply and GST splits into CGST and SGST. …

Step 1 — Identify the type of supply. Seller and buyer are both in Pune (same state, Maharashtra), so this is an intra-state supply. GST is therefore split into CGST + SGST, each at half the rate: 18% ÷ 2 = 9% each.

Step 2 — Compute the tax.

CGST = 9% of 40,000 = 0.09 × 40,000 = Rs 3,600. SGST = 9% of 40,000 = Rs 3,600. Total GST = 3,600 + 3,600 = Rs 7,200. Invoice value = 40,000 + 7,200 = Rs 47,200. …

Shortcut: since it is intra-state, compute the full 18% first (18% of 40,000 = Rs 7,200), then halve it for CGST and SGST (Rs 3,600 each); add the R …

Because both parties are in the same state, do NOT charge IGST — it must be CGST + SGST. Also, GST is added to the Rs 40, …