In this article we are going to know IGST full form
IGST Full Form
What Is The IGST Full Form?
The Full Form Of IGST is Integrated Goods and Services Tax.
G= Goods and
Below We Are Going To Explain The Meaning Of IGST,
Meaning Of IGST
What Is The Meaning Of IGST?
The Meaning Of IGST,
IGST stands for Integrated Goods and Services Tax. It is a category of GST that refers to taxes levied on interstate transactions or supplies of goods and services which are taxable as well as on imports of goods and services.
See This Also: What Is RIP Full Form? Find Out The Full Form Of RIP.
Below We Are Going To Explain The Abbreviation Of IGST,
Abbreviation Of Integrated Goods and Services Tax.
What Is The Abbreviation Of Integrated Goods and Services Tax?
The Abbreviation Of Integrated Goods and Services Tax Of IGST.
Goods and= G
IGST is collected by the Central Government and is further distributed among the respective states. IGST is charged when a product or service moves from one state to another state. The tax is shared between the central and state governments. The state deals with the Central Government and not with other states to settle the interstate tax amounts.
Features of IGST Tax:
- It is applicable to the inter-state supply of goods and services.
- It ensures that the consuming state gets the SGST component of the IGST Tax.
- It maintains the integrity of the Input Tax Credit chain in inter-state supplies.
- It abolished the earlier Central Sales Tax (CST) Act, 1956.
- The GST act governs IGST levies. According to the IGST Act, the Centre would levy IGST which would be CGST plus SGST on all inter-state transactions of taxable goods and services.
The tax will be collected by the Central Government, and the tax will be apportioned between the union and the states in the manner as may be provided by Parliament by law on the recommendations of the products and Services Tax Council.
Let us understand IGST with an example:
Ram is a trader in Delhi. He sold goods worth Rs. 5000 to Mohan in Rajasthan. It is an interstate transaction, so IGST is applicable here. Suppose the GST rate for the products is 15%. So, the IGST charged by the Central Government will be Rs. 750 (15% of Rs. 5000) and the new price of the product would be Rs. 5750. The IGST is paid to the central government and is shared between the state government and the central government as the tax rates decided by the authorities.
Integrated GST is also applicable to the import of goods and services into India. The basic concept is that any transport of goods or services during the import of goods or services into the territory of India shall be deemed to be a supply involving inter-state trade or commerce and hence susceptible to IGST.
Frequently Asked Question:
What is IGST example?
IGST is charged when the movement of goods and services from one state to another. For example, if goods are moved from Tamil Nadu to Kerala, IGST is collected on such goods. The revenue out of IGST is shared by the government and central government as per the rates fixed by the authorities.
How IGST is calculated?
Computation of IGST
In imports, IGST is computed on the transaction value of imported goods plus duties and taxes, etc. charged under any statute aside from the GST Laws. Here in imports, Integrated Goods and repair Tax IGST is payable for every and each import transaction before taking delivery of imported goods.
Who will collect IGST?
The IGST mechanism has been designed to ensure a seamless flow of input tax credit from one State to another. The inter-State seller would pay IGST on the sale of his goods to the Central Government after calibrating credit of IGST, CGST and SGST on his purchases.
What is GST IGST Cgst SGST?
SGST. State Goods and Services Tax. IGST, CGST, and SGST are categories of products and repair Tax. IGST applies to interstate transactions and CGST and SGST to intrastate transactions. IGST is collected together and distributed to the Central and State Governments.
Where is IGST used?
IGST is charged when the movement of goods and services from one state to another. For example, if goods are moved from Tamil Nadu to Kerala, IGST is imposed on such goods. The revenue out of IGST is shared by the government and central government as per the rates fixed by the authorities.
What are the features of IGST?
Salient features of IGST Act 2017
Continuance of uninterrupted ITC chain on inter-State transactions.
No requirement to pay tax upfront or considerable blockage of funds for the inter-State seller or buyer.
No claim of refund of taxes paid in exporting State, as ITC is employed up while paying the tax.
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