IGST

IGST (Integrated Goods and Services Tax) is a component of the Goods and Services Tax (GST) in India.

Key Features:

• Levied by the Central Government: IGST is levied and collected by the Central Government.
• Applicable on Inter-State Supplies: IGST is applicable on inter-state supplies (i.e., supplies from one state to another).
• IGST Act, 2017: The IGST Act, 2017, governs the provisions related to IGST.

IGST Rates:

• Nil Rate: 0% IGST rate applies to essential items like food grains, healthcare services, etc.
• 5% Rate: 5% IGST rate applies to items like spices, tea, coffee, etc.
• 12% Rate: 12% IGST rate applies to items like processed food, footwear, etc.
• 18% Rate: 18% IGST rate applies to items like soaps, detergents, etc.
• 28% Rate: 28% IGST rate applies to luxury items like cars, tobacco products, etc.

IGST Exemptions:

• Exemptions for Small Businesses: Businesses with a turnover of up to ₹40 lakhs are exempt from IGST.
• Exemptions for Specific Goods and Services: Certain goods and services like healthcare services, educational services, etc., are exempt from IGST.

IGST Returns:

• GSTR-1: Suppliers need to file GSTR-1 return for outward supplies.
• GSTR-3B: Suppliers need to file GSTR-3B return for a summary of outward supplies and tax liability.
• GSTR-9: Suppliers need to file GSTR-9 return for the annual return.

IGST Payment:

• Electronic Payment: IGST payment can be made electronically through the GST portal.
• Payment through Bank: IGST payment can also be made through authorized banks.

Importance of IGST:

• Revenue Generation: IGST is an important source of revenue for the Central Government.
• Simplification of Taxation: IGST simplifies the taxation system by subsuming multiple taxes.
• Promoting Economic Growth: IGST promotes economic growth by encouraging businesses to operate efficiently and competitively.