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Indian Economy & Institutions · Question 36 of 75

Question 36

MediumOriginal question

A supply of goods from Maharashtra to Gujarat attracts which component of GST?

Options for question 36

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. An inter-state supply attracts Integrated GST, which is levied and collected by the Centre.

  2. The Centre then apportions the state's share to the state where the goods are consumed.

  3. CGST and SGST together apply only when the supply stays within one state.

Worth noting

GST is a destination-based tax, so the revenue follows the buyer rather than staying with the state that produced the goods.

Concept
Which component of GST applies across state lines
Typical time
40 s
Your time
—
The rule this testsTaxation and GST
Practise this chapter →

Ten questions from Indian Economy & Institutions, at your own pace.

Practise this chapter →

Ten questions from Indian Economy & Institutions, at your own pace.