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Inter-State supplies are subject to:
ACGST + SGST
BIGST only
CUTGST + SGST
DIGST + Compensation Cess on notified goods
Answer & Solution
Correct answer: D. IGST + Compensation Cess on notified goods
1. Inter-State supply is governed by the IGST Act; IGST is levied under Sec 5 of the IGST Act.
2. On supplies of certain notified goods (pan masala, tobacco, motor cars, coal), Compensation Cess applies in addition.
3. Therefore the full liability is IGST + Compensation Cess on those notified goods.
_Source: ICAI BoS CA Final Paper 8, Ch 3 "Levy and Collection of Tax", §IGST Sec 5 + Comp Cess Act_
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