Q.Which tax is levied by the Central Government, at a rate equal to CGST plus SGST combined, on a sale of goods from Andhra Pradesh to a buyer in Telangana?
(A) UTGST
(B) IGST
(C) Entry Tax
(D) Compensation Cess only

A sale crossing from Andhra Pradesh into Telangana is an inter-state supply, taxed as one combined levy — IGST — instead of separate CGST and SGST.

Since the supplier is in Andhra Pradesh and the place of supply is in Telangana, a different State, this is an inter-state supply. On an inter-state supply, a single, combined tax — Integrated GST (IGST) — is levied and collected by the Central Government, at a rate equal to CGST plus SGST combined, with the State's due share subsequently apportioned to the destination State.

Option-by-option analysis:

• (A) Incorrect — UTGST is the intra-Union-Territory equivalent of SGST, not the inter-state levy.
• (B) Correct — IGST is exactly the tax levied on an inter-state supply. …