Q12 · UPSC current affairs · 6 October 2026 · News · Proposal to Withdraw IGST Exemption on Precious Metal Imports

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The Integrated Goods and Services Tax (IGST) is legally levied on which of the following transactions under the current Indian indirect tax architecture?

A Only on direct exports of agricultural commodities managed by canalising agencies
B Solely on services provided by central government departments to state entities
C On all inter-state supplies and imports of goods and services into India
D Exclusively on intra-state retail sales of manufactured goods within municipal limits

Correct answer: (c) On all inter-state supplies and imports of goods and services into India

Explanation

Option C is correct as IGST is levied under the IGST Act on all inter-state supplies and imports of goods and services into India. Options A, C, and D misrepresent the comprehensive scope of IGST, confusing it with intra-state levies or narrow sector-specific duties.

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