IGST FULL FORM
IGST Full-Form specified as Integrated Goods and Services Tax. IGST Full-Form also called as destination-based or origin-based tax system.
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.
Constitutional Amendment of IGST:
The 101st amendment of the Constitution of India inserted a new article as Article 269A for the introduction of IGST. IGST is mainly applicable to imports, domestic supply. Goods and Services on both IGST are applied.
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 is applicable on all over in India also over Jammu and Kashmir.
Rates imposed on IGST:
Rates applicable in highest in India at Forty per cent.
As we discuss above, IGST is liable for Interstate supply. It means in a short amount means to be a transaction between two states (If the LOS and POS of the deals are in different states) of goods and services or both.
- Location of Supply (LOS)
- Place of Supply (POS)
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
- 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 full form that we explain about the IGST hopefully knows it to clear.
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 now it was replaced by IGST.
Specifically, the Input Tax Credit system in CST was not allowable for the buyer so more in cascading effects.
The second one is that CST is having a lengthy process in the different forms of generation.
Now, IGST effectively implements by the Government by overcoming all these deficiencies.