Integrated Goods and Services Tax is the IGST Full Form. The abbreviation is a very common term that we all have come across but the full form is not known to us. Here you will learn further about the IGST and its features which will be extremely beneficial for you. It comes under the GST or Goods and Service Tax. GST can be seen on the bills when we visit a restaurant or make a purchase. The Central Government collects the IGST and then it is given to the several Indian states as per the rules and laws of tax distribution.
Salient Features of IGST
If you understand the Meaning of IGST then you will know that it is an important aspect of the Indian Economy. The calculation for Integrated Goods and Services Tax must be done precisely so that there is no breach. However, the following are the salient features of IGST.
Integrated Goods and Services Tax came into being after the CST Act or Central State Tax Act was abolished in the year 1956.
It invigilates the Input Tax Credit chain that is levied on the inter-state supplies.
The IGST looks into the fact that the concerned state gets the SGST portion of the IGST.
It is only levied on the goods and supplies exchanged between the states of the same country.
IGST is governed by GST.
The IGST Act states the IGST levied would be a combination of the CGST and the SGST on all inter-state transactions.
The Central Government collects and distributes the tax amount as is decided by the Parliamentary Law on recommendations by the Goods and Services Tax Council.
IGST is applicable on imported goods and services within the boundaries of India.
Why Should one pay IGST?
A responsible citizen should not shrug away from paying any of the taxes. Therefore, if you have to pay the IGST then you must not delay or try to escape the payment.
Save yourself from any legal involvements.
Avoid paying any penalties on failing to pay your tax.
To fulfill one’s duty of being a dutiful citizen of India.
You must not get confused between GST and IGST as both are completely different. However, IGST comes under the GST.
Conclusion
By now you surely do know about the Integrated Goods and Service Tax. If you are studying about the taxes then these pieces of information will be very helpful for you. You will know how IGST is different from GST. In this respect, try to learn about GST as well which will help you to understand both the taxes much better. If you shall
have any doubts then look up the FAQ section to do away with some of your queries.
FAQs on IGST Full Form
1. Does IGST have Anything to do with Goods Export?
A: No, IGST is not at all involved with any exported goods. It is the tax that is levied on the goods only within the boundaries of the country.
2. When is IGST Charged?
A: The abbreviation of igst stands for Integrated Goods and Services Tax. The Central Government collects the tax. This tax is charged when products or goods move from one state to another within a country. The tax is afterwards shared between both the Central and the state governments.
3. Do Other States Interfere in this Matter?
A: No. Since the tax is exchanged between the State government and the Central Government, no other State Government has the right to get involved or speak in this matter.