IGST Full Form specified as Integrated Goods and Services Tax. IGST Full Form also called as destination-based or origin-based tax system.
An IGST Full Form meaning as we considered was rooted origin from CST (Central Sales Tax).
The purpose of the formation of IGST is to overcome the deficiency in CST.
The full form is meant to be the Interstate supply of Goods and Services, i.e., IGST. This act also imposed by the Government on a similar date, 1st July 2017.
Indian parliament passed this bill in the upper house on 29th March 2017 and in the lower house on 6th April 2017,
And at last, President gives his approval on 12th April 2017.
After the President’s approval, it becomes an act and present in Indian Indirect Tax. The possession of IGST is only under the Central Government.
- 1 CONSTITUTIONAL AMENDMENT OF IGST FULL FORM:
- 2 IGST full form on Imports:
- 3 RATES IMPOSED ON IGST:
- 4 INTER-STATE SUPPLY:
- 5 DIFFERENCE BETWEEN INTRASTATE SUPPLY AND INTERSTATE SUPPLY:
- 6 Intra-State Supply:
- 7 Inter-State Supply:
- 8 GOODS AND SERVICES SUPPLY IN AREA AS:
- 9 DEFICIENCY IN PREVIOUS ACTS:
- 10 What Is Meant By IGST?
- 11 Who Will Collect IGST?
- 12 Who Will Get IGST Tax?
CONSTITUTIONAL AMENDMENT OF IGST FULL FORM:
The 101st amendment of the Constitution of India inserted a new article as Article 269A for the introduction of IGST full form.
IGST mainly applicable to imports or domestic supply of Goods and Services or on both IGST were applied.
An IGST is prominently under control of Central Government all revenue collected by the centre, which was imposable on imports and in-between state supply.
IGST full form is applicable on all over in India also over Jammu and Kashmir.
The IGST tax apportion between state government and central government the manner will be specify by the Parliament of India.
And this process done on the recommendation Goods and Services Council.
As well as the IGST paid can avail as credit for set off against other acts like CGST, SGST and IGST on his output supplies.
IGST full form on Imports:
The IGST collected from goods where it imported in India as per the provisions of the Customs Tariff Act, 1975.
RATES IMPOSED ON IGST:
Rates applicable in highest in India at Forty per cent. While CGST or SGST having 20% each tax rate because IGST combined tax of CGST + SGST.
Points must be referred for IGST:
- IGST imposed on interstate supply
- Value determined in Section 15 of CGST Act 2017
- Alcohol not purview of IGST
- Interstate supply also includes imports
As we discuss above, IGST is liable for Interstate supply. It means to be a transaction between two states (If the LOS and POS are in different states) of goods and services or both.
- Location of Supply (LOS)
- Place of Supply (POS)
DIFFERENCE BETWEEN INTRASTATE SUPPLY AND INTERSTATE SUPPLY:
If the transactions of goods and services or both having location of amount and place of supply is within the same state, then it does means Intra-state Supplies.
If LOS and POS is within the same state
The transactions of supply of goods and services or both having location of amount and place of supply in two or more different states, then it does mean Interstate supply.
If LOS and POS is two or more states
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GOODS AND SERVICES SUPPLY IN AREA AS:
Goods and Services transacted in between two:
- State to Union Territory
- State to State
- Union territory to Union territory
- Union territory to State
An Imports and Exports:
- Imports from custom area
- Imports to services
- Exports of goods and services
Intra State supply:
- In the same State supply
- Internal or within State or Union Territory supply.
The IGST full form that we explain hopefully somewhat clears now.
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DEFICIENCY IN PREVIOUS ACTS:
Central Sales Tax enacted in 1956. CST also aimed to apply on domestic supply of goods and services. But some defect in the law. Hence, now it was replaced by IGST.
Specifically, the Input Tax Credit (ITC Full Form) system in CST was not allowable for the buyer so more occuring in cascading effects.
The second one is that CST is having a lengthy process in the process of generation of different forms.
At last, IGST effectively implements by the Government by overcoming all these deficiencies.
What Is Meant By IGST?
The IGST means is a type of GST, Integrated Goods and Services Tax of 2017. The IGST tax collected by Central Government and apportioned in Central and State Government as per portion rate specified. This tax apply on inter state supply of two different states.
Who Will Collect IGST?
The IGST collected by Central Government, it will be share amongst the state government and central government in portion specified by the Parliament on the recognition of Goods and Services Tax council.
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Who Will Get IGST Tax?
The IGST tax, Integrated Goods and Services Tax is an interstate supply of goods and any services within two different states as for example transaction place means location of supply may be Rajasthan and place of supply Maharashtra. Hence, IGST applicable on supply of products.
Hope you know in this you know full information about What is IGST Full Form And What is IGST.
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