Question

On intra-state purchase of goods, which of the following accounts are debited:

A. Input IGST Account.
B. Input CGST Account and Input SGST Account.
C. Input IGST Account and Input CGST Account.
D. Input IGST Account and Input SGST Account.

Answer 1

The correct answer is B. Input CGST Account and Input SGST Account. Therefore, the correct option is B.

Step-by-step explanation:

The correct answer is B. Input CGST Account and Input SGST Account.

When intra-state purchases of goods are made, both CGST (Central Goods and Services Tax) and SGST (State Goods and Services Tax) are applicable. The input CGST and input SGST accounts are debited to record the purchase of goods within the same state.

For example, if a business in Delhi purchases goods from another business within Delhi, it would debit both the input CGST account and input SGST account to record the transaction.