On the supply of goods from one state to another, which tax is levied?

The correct answer is C, IGST, the Integrated Goods and Services Tax. It is levied and collected by the Government of India on inter-state supplies under Article 269A, and the proceeds are apportioned between the Union and the state where the goods or services are consumed, which is what makes GST a destination-based tax.

Option A is wrong because Central GST is only the Union's half of the levy on a supply made within a single state. Option B is wrong for the same reason on the state side: State GST applies to an intra-state supply. Option D describes exactly the intra-state case, where CGST and SGST are charged together at half the applicable rate each, and is the distractor that catches candidates who reverse the two situations. In a union territory without a legislature the state half is charged as Union Territory GST instead.