Explanations:Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. It is a single tax that replaces multiple indirect taxes levied by the central and state governments. GST is divided into three categories: CGST (Central Goods and Services Tax), SGST (State Goods and Services Tax), and IGST (Integrated Goods and Services Tax).
CGST and SGST are applicable in intra-state transactions, where both the supplier and the recipient are within the same state. CGST is collected by the central government, and SGST is collected by the state government. The rates for CGST and SGST are equal and are applied to the transaction value.
IGST, on the other hand, is applicable in inter-state transactions, where the supplier and the recipient are in different states. IGST is a single tax levied on the supply of goods and services from one state to another. The IGST rate is the same as the combined CGST and SGST rates. In this case, the IGST rate is 10%, which is the same as the combined CGST and SGST rates.
In the given scenario, dealer A in Maharashtra is selling goods to dealer B in Kerala. Since this is an inter-state transaction, IGST is applicable. The sale price (SP) is 1000, and the GST rate is 10%. Therefore, the IGST payable by dealer B to dealer A is 10% of 1000, which is 100.
It is important to note that IGST is a single tax that replaces both CGST and SGST in inter-state transactions. Therefore, options A and C, which suggest CGST and SGST, are incorrect. Option D is incorrect because it suggests an IGST rate of 50, which is half of the actual IGST rate of 100.