Question

Identify the type of Goods and Services Tax imposed for intra state trade.

• A. Central Goods and Services Tax
• B. National Goods and Services Tax
• C. Integrated Goods and Services Tax
• D. State Goods and Services Tax

Answer 1

Answer: (A), (D)

State Goods and Services Tax

When goods and services are traded within a state or union territory, it is known as intra state trade. Both the central and the state governments impose GST on intra state trade in the form of Central Goods and Services Tax or CGST and State Goods and Services Tax or SGST respectively. However, when there is a trade between two states, it is called inter state trade, and the central government imposes the Integrated Goods and Services Tax on it.