IGST Full Form– Integrated Goods and Service Tax
IGST Full Form is Integrated Goods and Service Tax, it is also called as IGST Act 2017. It is a component of Goods and Service Tax (GST).
GST is a tax which can be levy by the central government on the basis of IGST Act 2017, According to IGST act, the centre would levy the IGST on inter-state transaction of taxable goods and services with the appropriate declaration of transferring goods and services. The IGST will apply to those goods if the seller making supply outside the state.
The exporting state will collect the IGST and transfer it to the Center. The importing dealer can claim the credit of IGST while discharging his/her output tax liability in his own state, then the centre will transfer the importing state the credit of IGST used in payment of SGST.
For a better understanding, here is an example.
Example If a dealer of Delhi sells his goods of worth 5000 in Haryana, then he has to pay an IGST on those goods. Suppose the IGST is 15%, so the dealer has to pay 750 as IGST to center government. Later on, the centre government shares that IGST with the state government according to the decision rules.
Features of IGST
- Uninterrupted ITC chain on Inter-state transaction.
- No need to pay tax upfront or substantial blockage of funds for the inter-state seller.
- Self-monitoring model.
- The IGST Model can take ‘Business to Business’ as well as ‘Business to Consumer’ transactions into an account.
IGST Quick Summary
|Full-Form||Integrated Goods and Service Tax|
|Levy on||Inter-State Supplies|
|Levy by||Importing State|
|Tax goes to||Central Government|
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