The correct answer is: D. There is interstate supply.
Integrated Goods and Services Tax (IGST) is a tax levied on the supply of goods and services that crosses state borders. It is levied on the value of the supply, plus the applicable central and state taxes. IGST is collected by the central government and then distributed to the states based on a formula.
Option A is incorrect because goods sold in a union territory are subject to Union Territory Goods and Services Tax (UTGST).
Option B is incorrect because goods sold from one GST dealer to another GST dealer are subject to Goods and Services Tax (GST).
Option C is incorrect because goods sold within a state are subject to State Goods and Services Tax (SGST).
I hope this helps!