There is a slight confusion regarding GST in the Border areas of Bihar. For the goods being sold across the state, GST is being levied but everything is going to the Central government. What is the GST being levied here?
A
SGST
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B
CGST
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C
IGST
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D
No GST being charged
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Solution
The correct option is C IGST The GST being collected for goods sold across the border of the state is IGST-Integrated GST which is going directly to the Central Government. CGST and SGST are not applicable on such sales as movement of goods from one state to another as a consequence of such sale fall under the category of Inter State transactions. However the Central Government later distributes IGST between the respective State Governments as per the law.