MANAGEMENT

Detailed explanation-1: -The full form of IGST is Integrated Goods and Services Tax. Under GST, IGST is a tax levied on all interstate supplies of goods and/or services or across two or more states/Union Territories. Further, IGST levy and collection will be governed by the IGST Act, 2017, as amended from time to time.

Detailed explanation-2: -IGST is a mechanism to monitor the inter-state trade of Goods and services and further to ensure that the SGST component accrues to the consumer state. It would maintain the integrity of Input Tax Credit (hereinafter referred to as “ITC”) chain in inter-state supplies.

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: -The importing state gets the final tax revenue. Integrated Goods and Service Tax or IGST is a combination of the state’s share (SGST) and the central government’s share (CGST) of the tax.

Detailed explanation-5: -So import of goods or services will be treated as deemed inter-State supplies and would be subject to Integrated tax. While IGST on import of services would be leviable under the IGST Act, the levy of the IGST on import of goods would be levied under the Customs Act, 1962 read with the Custom Tariff Act, 1975.