What is IGST (Integrated Goods and Services Tax)??

What is IGST (Integrated Goods and Services Tax)

which means of IGST

IGST refers to the included goods and services Tax that is a part of GST under the concept of one kingdom one tax. it's miles one of the 3 forms of taxes and is below the integrated items and offerings Tax Act, 2017. it is charged on the products and services supplied from one nation to some other.

Functions of IGST

IGST equals to CGST+SGST. IGST model envisages that the centre will levy a tax at a charge approximately identical to CGST+SGST on Inter-state delivery of goods & services. it's miles a destination primarily based tax and could accrue to importing country.it's going to lower tax burden via taxing Inter-country transaction handiest once.

B2B transactions – tax will go with the flow to the nation where patron claims enter Tax credit.

B2C transactions – tax will go with the flow to the state of the purchaser, in any other case tax will continue to be within the nation of the dealer.

Examples of IGST

1. Tax rate of CGST and SGST respectively.

Anil, a Hyderabad registered supplier, bought goods to Raju, a Kolkata registered supplier, for Rs. 10 Lakhs and in addition, Raju offered the goods to Rajesh, a Gurgaon registered store, for Rs. eleven Lakhs. first of all, Anil sold the goods to Raju Anil will collect IGST on the CGST+SGST price on Rs. 10 Lakhs. Dev gets the credit which he can use the for similarly price of his GST. This credit might be given after the payment of IGST to Anil on Rs. 10 Lakhs.Secondly, Raju offered the products to Rajesh Dev will acquire IGST on the CGST+SGST price on Rs. 11 Lakhs. Bharat gets the credit which he can use for in addition fee of his GST. This credit score may be given after the price of the IGST to Dev on Rs. eleven Lakhs. So ultimately, West Bengal gets the SGST on Rs. 10 Lakhs from Hyderabad on the first transaction among Anil and Raju. Maharashtra may also be amassing tax on the second one transaction between Raju and Rajesh on the quantity of Rs. eleven Lakhs which it'll further switch to the principal authorities (CGST) and to the Haryana government (SGST). Haryana gets the SGST on the quantity of Rs. 11 Lakhs from the transaction between Raju and Rajesh. therefore, Inter-nation exchange will advantage because the interstate transactions do not ought to be taxed two times. that is in evaluation to provide taxation regime wherein if you acquire items from Kolkata you pay tax there and on the other hand for your country in which you ultimately sell it. those will assist the traders to increase their Inter-kingdom trade via reducing the tax burden. In case you have any query feel free to contact us. you can also check our services for GST Registration and GST Filling.