Table of Contents
IGST full form : Integrated Goods and Services Tax
What is IGST?
The Integrated Goods and Services Tax (IGST) is a tax levied on India’s supply of goods and services. It is a comprehensive tax covering the entire value chain of goods and services. The IGST is levied and collected by the Central Government and shared with the States where the goods and services are consumed.
Salient Features of IGST
The salient features of IGST are as follows:
- It is a destination-based tax levied on the supply of goods and services.
- The tax will be levied at the time of the supply of goods and services and not at the import or export of goods.
- It will be levied on both intra-state and inter-state supplies of goods and services.
- It will be levied at 10% on the supply of goods and services.
- The states will collect the tax, and the Centre will be responsible for the administration and enforcement of the tax.
Why Should one pay IGST?
The main reason to pay IGST is that it is a tax that is levied on the interstate supply of goods and services. This tax is collected by the Central government and then distributed to the states in which the goods or services were supplied.
FAQS on IGST
What is IGST?
Integrated Goods and Services Tax (IGST) is a tax levied on the supply of goods and services in the Indian territory. It is one of the three taxes levied under India's Goods and Services Tax (GST) regime. The other two taxes are the Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST). IGST is levied and collected by the Central Government and then shared between the Centre and the States in the ratio of 50:50.
What is the rationale behind the introduction of IGST?
The main rationale behind the introduction of IGST is to remove the cascading effect of taxes on the supply of goods and services. Under India's current indirect tax regime, there are a number of taxes levied at different stages of the supply chain. This leads to the cascading of taxes, i.e., the imposition of tax on tax. The introduction of IGST will help mitigate the cascading effect of taxes and will thus reduce the cost of goods and services.
How is IGST collected and administered?
IGST is collected and administered by the Central Government. It is collected based on the invoices raised by the suppliers of goods and services. The tax is payable by the recipients of the goods and services.
