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CA Intermediate · Taxation · GST in India - An Introduction

Which statement about the dual GST structure in India is correct?

The correct statement is that CGST is levied by the Centre on intra-State supplies, with UTGST applying under its own Act in Union Territories without legislature. IGST is levied by the Centre on inter-State supplies and imports, and SGST is levied by States, so the other statements are incorrect.

  1. ACentral GST on intra-State supplies is levied under the CGST Act, and the Union Territory GST on supplies within a Union Territory without legislature is levied under the UTGST ActCorrect
  2. BIGST is levied by States on supplies made within their territory
  3. CSGST is levied by the Centre on inter-State supplies of goods
  4. DImport of goods into India attracts CGST and SGST but not IGST

Explanation

CGST is levied by the Centre on intra-State supplies under the CGST Act, and UTGST under the UTGST Act applies in Union Territories without legislature. IGST is levied by the Centre on inter-State supplies and imports, so options B and C are wrong. Option D is wrong because imports attract IGST (in addition to customs duty), not CGST/SGST.

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