Question

The tax levied by central Government for trading within a state is:
A). IGST
B). CGST
C). SGST
D). UTGST

Answer 1

Hint: Here the question is about taxation applied in the state by the central government, Here we have to know that tax is a amount individual have to pay if his or her annual income comes under the criterion of tax payer, central government had defined the levels of tax payer and accordingly individual had to pay the tax.

Complete step-by-step solution:
Here the question asked is about the type of tax which the traders had to pay to the central government for trading within a state, and here we know that the type of tax which the traders need to pay are:
CGST: central goods and services tax.
Examples of CGST excise duty are: central surcharges, sales tax, state cesses etc.
For calculation of CGST amount, we need to first calculate the GST amount and then half of GST amount will be CGST amount. Now to calculate the GST amount we need to multiply the GST rate with the taxable amount.

Note: IGST is the tax needed to pay when the trading is done outside the state, and the percentage of tax is divided in both the state and central government. SGST is the tax which is received by the state government. UTGST is the tax for the union territories.