What does IGST mean in TAX
IGST (Integrated Goods and Services Tax) is a comprehensive tax levied on the supply of goods and services throughout India. It is an indirect tax that aims to eliminate cascading effects of taxes and create a unified tax system.
IGST meaning in Tax in Business
IGST mostly used in an acronym Tax in Category Business that means Integrated Goods Service Tax
Shorthand: IGST,
Full Form: Integrated Goods Service Tax
For more information of "Integrated Goods Service Tax", see the section below.
What does IGST mean?
IGST is a comprehensive tax that subsumes various indirect taxes, including:
- Central Excise Duty
- Value Added Tax (VAT)
- Service Tax
- Special Additional Duty of Customs
How does IGST work?
- IGST is levied on all inter-state supplies of goods and services.
- The tax rate is uniform across the country, eliminating the need for multiple tax rates.
- The tax is collected at the point of sale and deposited with the central government.
- Input tax credits are available to reduce the IGST liability, ensuring that only the value added is taxed.
Benefits of IGST
- Elimination of cascading effects: IGST removes the cascading effect of taxes, where tax on tax is levied. This simplifies the tax structure and reduces the overall tax burden.
- Uniformity: The uniform IGST rate across India eliminates tax arbitrage and promotes a level playing field for businesses.
- Simplified compliance: IGST simplifies compliance by reducing the number of taxes and returns to be filed.
Essential Questions and Answers on Integrated Goods Service Tax in "BUSINESS»TAX"
What is IGST?
Integrated Goods and Service Tax (IGST) is a comprehensive indirect tax levied on the inter-state supply of goods and services in India. It is a part of the Goods and Services Tax (GST) system and is applicable to all taxable transactions between states.
Who is liable to pay IGST?
The supplier of goods or services is responsible for paying IGST when making inter-state supplies. However, in certain cases, the recipient of the goods or services may be required to pay IGST under reverse charge mechanism.
What is the rate of IGST?
The rate of IGST is the same as the combined rate of Central GST (CGST) and State GST (SGST) that would have been applicable if the transaction had taken place within the same state. It is typically 5%, 12%, 18%, or 28% depending on the nature of the goods or services.
How is IGST calculated?
IGST is calculated by multiplying the value of the taxable supply by the applicable IGST rate. For example, if the value of the taxable supply is ₹100,000 and the IGST rate is 18%, the IGST payable will be ₹18,000.
How is IGST filed and paid?
IGST is filed and paid through the GST portal. The supplier must file a GST return (GSTR-1) and pay the IGST due on a monthly basis. The recipient of the goods or services may also be required to file a GST return (GSTR-2A) to claim input tax credit for the IGST paid.
Final Words: IGST is a transformative tax that has significantly improved the Indian tax system. It has eliminated cascading effects, simplified compliance, and promoted uniformity, creating a more efficient and competitive business environment.
IGST also stands for: |
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| All stands for IGST |