Question

IGST is payable when the supply is :

• A. Interstate
• B. Intrastate
• C. Intra-UT
• D. Imported

Hint:

IGST is charged when goods or services move from one state to another. Inside one state, CGST and SGST apply.

Answer 1

The Correct Option is A

Step 1: Understand the tax:
GST has three parts: CGST, SGST/UTGST and IGST.
IGST means Integrated Goods and Services Tax. It is charged under the IGST Act, 2017.

Step 2: Recall the rule:
IGST is levied on every inter-state supply of goods or services.
It is collected by the Central Government and then shared with the destination state.

Step 3: Check option (A) Interstate:
Supplier and place of supply are in different states. So the supply is inter-state and IGST is payable. (A) is correct.

Step 4: Check the other options:
(B) Intrastate: both parties are in the same state. CGST and SGST apply, not IGST.
(C) Intra-UT: both parties are in the same Union Territory. CGST and UTGST apply.
(D) Imported: an import is taxed as an inter-state supply, but the standard test for IGST is that the supply crosses a state border. The textbook answer is therefore (A).

Final Answer:
IGST is payable when the supply is interstate. This is option (A).