Integrated Goods and Service Tax is the levied on inter-state goods and service transactions. It is applicable on imports and exports as well. Under IGST, the taxes charged are shared by both the centre and state, The SGST part of the tax goes to the state wherein the goods and services are consumed.
IGST also helps you claim Input Tax Credit. It's facility that checks cascading tax and helps business owners like you save at every stage of the supply chain.
• Maintenance of uninterrupted ITC chain on inter-State transactions;
• No upfront payment of tax or substantial blockage of funds for the inter-State seller or buyer
• No refund claim in exporting State, as ITC is used up while paying the tax;
• Self-monitoring model
• Ensures tax neutrality while keeping the tax regime simple.
• Simple accounting with no additional compliance burden on the taxpayar;
• Would facilitate in ensuring high level of compliance and thus higher collection efficiency. Model can handle business as well as 'Business to Consumer' transactions.