MANAGEMENT

Detailed explanation-1: -IGST will be applicable on any supply of goods and/or services in both cases of import into India and export from India. Note: Under IGST, Exports would be zero-rated. Tax will be shared between the Central and State governments.

Detailed explanation-2: -For instance, if a trader from West Bengal has sold goods to a customer in Karnataka worth Rs.5, 000, then IGST will be applicable as the transaction is an interstate transaction. If the rate of GST charged on the goods is 18%, the trader will charge Rs.5, 900 for the goods.

Detailed explanation-3: -IGST would be levied by the Central Government on all inter-State transactions of taxable goods or services. It requires the transfer of funds between respective accounts. The utilisation of credit of CGST & SGST for payment of IGST by “B” would require the transfer of funds to IGST accounts.

Detailed explanation-4: -IGST is a mechanism to monitor the inter-State trade of goods and services and ensure that the SGST component accrues to the consumer State. It would maintain the integrity of ITC chain in inter-State supplies. The IGST rate would broadly be equal to CGST rate plus SGST rate.

Detailed explanation-5: -Both Centre and States will simultaneously levy GST across the value chain. Tax will be levied on every supply of goods and services. Centre would levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State.