With regard to Goods and Services Tax in the course of inter-State trade or commerce, which one of the following statements is not correct?
It is levied by the Union.
It is levied and collected by the Union.
It is not apportioned between the Union and States.
Goods imported are treated to be supply of goods in the course of inter-State trade.
Answer is Wrong!
Answer is Right!
This question was previously asked in
UPSC Combined Section Officer – 2019-20
The incorrect statement is C) It is not apportioned between the Union and States.
Article 269A of the Constitution deals with Goods and Services tax on supplies in the course of inter-State trade or commerce. It clearly states that GST on inter-state supplies shall be levied and collected by the Government of India, but the tax *shall be apportioned* between the Union and the States in the manner provided by Parliament by law on the recommendations of the Goods and Services Tax Council. Statements A and B are correct as per Article 269A. Statement D is also correct; under the IGST Act, goods imported into India are deemed to be inter-state supplies and are subject to IGST.