What is IGST– Integrated GST (Integrated Goods and Services Tax) Everything you need to know about IGST. Have a look at Complete details for IGST2024 According to section 2( c), “Integrated Goods and Services Tax” (IGST) implies tax imposed under this Act on the supply of any products and/or services in the course of inter-State trade or commerce.
Explanation 1.- A supply of products and/or services in the course of import into the area of India shall be considered to be a supply of products and/or services in the course of inter-State trade or commerce.
Explanation 2.– An export of items and/or services will be considered to be a supply of goods and/or services in the course of inter-State trade or commerce.
Important Files
- Clause by Clause Analysis for IGST Bill
- IGST Bill, Download Integrated IGST Bill
- Draft IGST Law, Integrated IGST Law in PDF Format
- List of all areas of IGST, All Sections Integrated GST
IGST– How it is works?
What is IGST?
The IGST Act comprises of the following:
- 9 Chapters
- 25 Sections
- 8 Definitions
A BILL to make a provision for levy and collection of tax on inter-State supply of items or services or both by the Central Government and for matters linked therewith or incidental thereto.
This legislation is called the incorporated Goods and Services Tax Act, 2017 (in other words IGST), an Act to impose, gather and administer IGST in India.
This Act will apply to whole of India, i.e., including the State of Jammu & Kashmir. Presently, Service Tax does not apply to State of Jammu & Kashmir however Central Excise Act, 1944 applies to that state. What is suggested by ‘India’ is defined in section 2(35) of Goods and Services Tax Act, 2016.
The Act after being legislated shall enter into force from a date which will be notified by the Central Government by way of a notice. It may also designate various dates for enforcement of various arrangements of the Act.
IGST or integrated products and services tax would mean the tax imposed under IGST Act on the supply of any goods and/ or services in the course of inter-state trade or commerce.
‘ Goods’ and ‘services’ are specified in the Constitution of India itself vide 122 nd Amendment. CGST Act in its area 2(50) likewise specifies IGST as tax levied under the IGST Act.
IGST shall also apply to import of goods and services into India. The description stipulates that any supply of items or services in the course of import of items or services into Indian territory will be considered to be supply of products/ services in the course of inter-state trade or commerce and hence liable the IGST.
It has likewise been proposed that like import transactions, export of products and services will be considered to be supply in course of inter-state trade or commence.
Interstate trade or commerce will, therefore include supply of products/ services in the course of–
- Inter-state trade or commence
- Import into Indian territory (deemed to be inter-state)
- Export (deemed to be inter-state)
Thus, IGST will use to inter-state transactions and import along with export transactions (deemed to be inter-state deals) connecting to supply of products and/ or services.
Presently, short article 269 of the Constitution empowers the Parliament to make law on the taxes to be levied on the sale or purchase occurring in the course of inter-State trade or commerce. Appropriately, Parliament had enacted the Central Sales Tax Act, 1956 for levy of central sales tax on the sale occurring in the course of inter-State trade or commerce. The main sales tax is being collected and retained by the exporting States.
In view of the above, it has become needed to have a Central legislation, specifically, the Integrated Goods and Services Tax Bill,2017 The proposed Legislation will confer power upon the Central Government for imposing goods and services tax on the supply of items or services or both which takes place in the course of inter-State trade or commerce. The proposed Legislation will remove both the lacunas of the present main sales tax. Besides being vatable, the rate of tax for the incorporated products and services tax is proposed to be basically equal to the amount overall of the central products and services tax and state items and services tax or Union area items and services tax to be levied on intra-State supplies. It is anticipated to reduce expense of production and inflation in the economy, therefore making the Indian trade and market more competitive, locally along with globally. It is likewise anticipated that introduction of the integrated products and services tax will foster a common or smooth Indian market and contribute significantly to the growth of the economy.
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