{"id":3736,"date":"2020-03-02T05:43:58","date_gmt":"2020-03-02T05:43:58","guid":{"rendered":"https:\/\/commerceiets.com\/?p=3736"},"modified":"2020-03-02T05:43:58","modified_gmt":"2020-03-02T05:43:58","slug":"what-is-igst","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/what-is-igst\/","title":{"rendered":"WHAT IS IGST"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_72 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/what-is-igst\/#WHAT_IS_IGST\" title=\"WHAT IS IGST\">WHAT IS IGST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/what-is-igst\/#FEATURES_OF_IGST\" title=\"FEATURES OF IGST\">FEATURES OF IGST<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"what-is-igst\"><span class=\"ez-toc-section\" id=\"WHAT_IS_IGST\"><\/span><strong>WHAT IS IGST<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>IGST means Integrated Goods and Service Tax, one of the three categories under <a href=\"https:\/\/commerceiets.com\/gst\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Goods and Service Tax  (opens in a new tab)\">Goods and Service Tax <\/a>(CGST, IGST and SGST) with a concept of one tax one nation. IGST falls under Integrated Goods and Service Tax Act 2016.<\/p>\n\n\n\n<p>IGST is charged when movement of goods and\nservices from one state to another. For example, if goods are moved from Tamil\nNadu to Kerala, IGST is levied on such goods. The revenue out of IGST is shared\nby state government and central government as per the rates fixed by the\nauthorities.<\/p>\n\n\n\n<p><strong>AS PER GST\nLAW<\/strong><\/p>\n\n\n\n<p>Under the GST regime, an Integrated GST (IGST) would be\nlevied and collected by the Centre on inter-State supply of goods and services.\nUnder Article 269A of the Constitution, the GST on supplies in the course of\ninterState trade or commerce shall be levied and collected by the Government of\nIndia and such tax shall be apportioned between the Union and the States in the\nmanner as may be provided by Parliament by law on the recommendations of the\nGoods and Services Tax Council.&nbsp;<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"features-of-igst\"><span class=\"ez-toc-section\" id=\"FEATURES_OF_IGST\"><\/span><strong>FEATURES OF IGST<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>IGST equals to<strong>&nbsp;CGST<\/strong>+<strong>SGST<\/strong>. IGST model envisages that the centre will levy tax at a rate approximately equal to CGST+SGST on&nbsp;<strong>Inter-State supply<\/strong>&nbsp;of goods &amp; services.<\/li><li>It is a&nbsp;<strong>destination based&nbsp;<\/strong>tax and will accrue to importing state.<\/li><li>It will lower tax burden by taxing Inter-State transaction only once.<\/li><li>B2B transactions \u2013 tax will flow to the State where Purchaser claims&nbsp;<strong>Input Tax Credit<\/strong>.<\/li><li>B2C transactions \u2013 tax will flow to the State of Consumer, otherwise tax will remain in the State of Seller.<\/li><\/ul>\n\n\n\n<p><strong>EXAMPLE OF\nIGST<\/strong><\/p>\n\n\n\n<p><strong>1.&nbsp;<\/strong>Tax rate of\nCGST and SGST are&nbsp;<strong>15%<\/strong>&nbsp;and<strong>&nbsp;12%<\/strong>&nbsp;respectively.<\/p>\n\n\n\n<p>Anil, a Chennai registered trader, sold goods\nto Dev, a Mumbai registered trader, for&nbsp;<strong>Rs. 10 Lakhs<\/strong>&nbsp;and\nfurther Dev sold the goods to Bharat, a Delhi registered retailer, for<strong>&nbsp;Rs.\n11 Lakhs.<\/strong><\/p>\n\n\n\n<p>Firstly, Anil sold the goods to Dev<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Anil willl\n     collect IGST at the CGST+SGST rate on Rs.&nbsp;10 Lakhs.<\/li><li>Dev will get\n     the credit which he can use for further payment of his GST.&nbsp;This\n     credit will be given after the payment of IGST to&nbsp;Anil onRs.\n     10 Lakhs.<\/li><\/ul>\n\n\n\n<p>Secondly, Dev sold the goods to Bharat<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Dev will\n     collect IGST at the CGST+SGST rate on Rs.&nbsp;11 Lakhs.<\/li><li>Bharat will\n     get the credit which he can use for further payment of his GST. This\n     credit will be given after the payment of the IGST to Dev onRs.\n     11 Lakhs.<\/li><\/ul>\n\n\n\n<p>So Finally, Maharashtra will get the SGST on\nRs. 10 Lakhs from Chennai on the first transaction between Anil and Dev.\nMaharashtra will also be collecting tax&nbsp;on the second transaction between\nDev and Bharat&nbsp;on the amount of Rs. 11 Lakhs which it will further\ntransfer to the Central Government (CGST) and to the Delhi government (SGST).<\/p>\n\n\n\n<p>Delhi will get the SGST on the amount of Rs. 11 Lakhs\nfrom the transaction between Dev and Bharat.<\/p>\n\n\n\n<p>Hence, Inter-State trade will benefit as the\ninterstate transactions do not have to be taxed twice. This is in contrast to\npresent taxation regime where if you purchased goods from Mumbai you pay tax\nthere and then again in your state in which you ultimately&nbsp;sell it.&nbsp;\nThese will help the traders to increase their Inter-State trade by lowering tax\nburden.<\/p>\n\n\n\n<p><strong>ADVANTAGES OF IGST MODEL<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>A simple, transparent and\nself-monitoring model. <\/li><li>Maintenance of tax neutrality in the\ncountry. <\/li><li>The overall tax paying process will be\nquick with no additional burdens on the taxpayer. <\/li><li>No requirement for the physical\nverification of documents and claims as all the relevant data will be available\non the GSTN server. <\/li><li>As payment of tax will be on an online\nplatform, the process will be easy and invulnerable to disputes and\nmanipulations. <\/li><li>Ensuring that the Input Tax Credit chain\nfor the Interstate transactions is continuous. <\/li><li>There will be no significant blockage of\nfunds or an upfront payment of tax for the Interstate sellers and buyers. <\/li><li>There will be no requirement of claiming\nrefunds in the exporting State, as Input Tax Credit will be used up while\npaying the tax. <\/li><li>Efficient management of \u2018Business to\nBusiness\u2019 (B2B) as well as \u2018Business to Consumer\u2019 (B2C) transactions. <\/li><li>The uniformity in tax rates and\nsimplified procedures in the country will also help in minimizing the cost of\ncompliance.<\/li><\/ul>\n\n\n\n<p><strong>JOIN THE CHANNEL ON TELEGRAM<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/t.me\/commerceiets\" target=\"_blank\">https:\/\/t.me\/commerceiets<\/a><\/p>\n\n\n\n<p><strong>CONNECT ON LINKEDIN<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noopener\">https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/<\/a><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Also Study:<\/strong><\/td><td><strong>Also Study:<\/strong><\/td><td><strong>Also Study:<\/strong><\/td><td><strong>Also Study:<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/features-of-gst\/\">GST and its features<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/history-of-gst\/\">History of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/advantages-of-gst-in-india\/\">Advantages of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/disadvantages-of-gst\/\">Disadvantages of GST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/constitutional-aspect-of-gst\/\">Constitutional aspects of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/liability-of-tax-payer\/\">Liability of tax payer<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/objectives-of-gst\/\">Objectives of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/what-is-igst\/\">IGST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/cgst\/\">CGST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/gst-council\/\">GST Council<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/utgst-full-form\/\">UTGST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/sgst\/\">SGST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/levy-and-collection-of-gst\/\">Levy and collection of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/composition-levy\/\">Composition Levy<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/online-gst-registration\/\">Online GST Registration<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/exemptions-under-gst\/\">Exemptions under GST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/reverse-charge-in-gst\/\">Reverse Charge in GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/taxable-supply\/\">Taxable supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/time-of-supply\/\">Time of supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/value-of-supply\/\">Value of supply<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/place-of-supply\/\">Place of supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/inter-state-supply\/\">Inter-state supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/intra-state-supply\/\">Intra-state supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/what-is-composite-supply\/\">Composite supply<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/mixed-supply\/\">Mixed supply&nbsp;<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/composite-and-mixed-supply\/\">Composite and mixed supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/online-payment-of-gst\/\">Online payment of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/how-to-claim-tcs-in-gst\/\">How to Claim TCS in GST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/how-to-claim-tds-in-gst\/\">How to claim TDS in GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/input-tax-credit-under-gst\/\">Input tax credit under GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/tax-invoice-under-gst\/\">Tax Invoice<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/debit-note\/\">Debit Note in GST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/credit-note\/\">Credit Note in GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/revised-invoice-in-gst\/\">Revised Invoice in GST<\/a><\/td><td><a href=\"http:\/\/v\" target=\"_blank\">Supplementary Invoice<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/e-way-bill-in-gst\/\">E-Way bill in GST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/gst-returns\/\">GST Returns<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/goods-and-service-tax-network\/\">GSTN (Goods and Service Tax Network)<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/gst-suvidha-provider\/\">GST Suvidha Provider<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/gst-portal\/\">GST Portal<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>WHAT IS IGST IGST means Integrated Goods and Service Tax, one of the three categories under Goods and Service Tax (CGST, IGST and SGST) with a concept of one tax one nation. IGST falls under Integrated Goods and Service Tax Act 2016. IGST is charged when movement of goods and services from one state to&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/what-is-igst\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;WHAT IS IGST&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":3738,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[229],"tags":[],"class_list":["post-3736","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-goods-and-service-tax"],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3736","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=3736"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3736\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/3738"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=3736"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=3736"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=3736"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}