CMA Intermediate · Direct and Indirect Taxation · Concept of Indirect Taxes
Under the constitutional scheme in India, which indirect tax is levied by the Union Government on inter-State supply of goods and services?
IGST is the tax levied and collected by the Union Government on inter-State supplies of goods and services. It is later apportioned to the consuming State. SGST applies only to intra-State supplies, so it is not the correct answer.
- AIntegrated Goods and Services Tax (IGST)Correct
- BState Goods and Services Tax (SGST)
- CCentral Sales Tax collected by States
- DEntertainment tax by local bodies
Explanation
Under GST, tax on inter-State supplies is levied and collected by the Centre as IGST, and then apportioned between the Centre and the destination State. SGST applies only to intra-State supplies, and the other levies have been subsumed or are not the inter-State GST levy.
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