Question

Kiran who resides in Kerala buys a car from Karnataka for ₹4,00,000 under a GST of 28%. Then the amount goes to central government is .

• A. ₹1,12,000
• B. ₹56,000
• C. ₹28,000

Answer 1

The correct option is A ₹1,12,000

Since it is a transaction between two states, the tax is paid as IGST and this goes to central government only.

Here IGST = $\frac{28}{100}\times ₹400000=₹1,12,000$.

$\therefore$ The amount goes to central government = ₹ 1,12,000.