Full Form of IGST

What is IGST?

The Integrated Goods and Services Tax (IGST) is a tax levied under the Goods and Services Tax (GST) regime in India on the supply of goods and services that occur between two different states (inter-state transactions) or on imports. It was introduced through the GST Act, 2017, to simplify the indirect tax structure and replace multiple state-level taxes like CST (Central Sales Tax). IGST is governed by the IGST Act, 2017, and is administered by the Central Government. The revenue collected under IGST is shared between the Central and State governments based on a prescribed mechanism, ensuring a seamless flow of input tax credit across state borders. Businesses involved in inter-state trade must charge IGST on their invoices, which can be set off against CGST, SGST, or UTGST liabilities. For students and professionals appearing in competitive exams like UPSC, SSC, or banking, understanding IGST is crucial as it forms a key part of the Indian taxation system and frequently appears in General Awareness sections. IGST also applies to imports, where it is collected along with basic customs duty. The introduction of IGST has streamlined tax administration, reduced cascading taxes, and promoted the concept of 'One Nation, One Tax'.

IGST का फुल फॉर्म

Example

A manufacturer in Gujarat selling goods to a dealer in Maharashtra must charge IGST on the invoice instead of separate CGST and SGST.

IGST — frequently asked questions

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