What is Integrated Tax under GST

Meaning of term Integrated Tax under GST

 

This post explains about Integrated Tax.  

Integrated Tax

Inter-State Goods and Service Tax (IGST)

IGST would be levied on all supplies of goods and /or services in the course of inter-state trade or commerce. IGST would be applicable to import of goods or services from outside country as well, which is indicated in the Constitutional Amendment Act, 2016.

The balance of credit under VAT as well as Cenvat Credit can be carried forward from the earlier regime. Further the duty and tax paid on closing stock would be available as credit where duty paying documents available, for hitherto exempted products / services which may not have been claimed as set-off. Lower deemed credit is available for those who do not have duty paying documents.

On inter-state supply of goods and services, Integrated GST (IGST) is collected by Centre. IGST is also applicable on imports.

Interstate trade or commerce will, therefore include supply of goods / 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 shall apply to inter-state transactions and import as well as export transactions (deemed to be inter-state transactions) relating to supply of goods and / or services.

The information provided here is about Integrated Tax.  If you would you like to add more information about Integrated Tax, share below your thoughts.

 

 


Comments


NABHA PAPER MILLS P.LTD;: OURS ONE CUSTOMER FROM AMBALA WAS PURCHASING GOODS FROM US AS EXCISE DUTY PAID & TAX (VAT) FREE BASIS & WAS EXPORTING HIS GOODS TO OTHER COUNTRIES. HE WAS REGULARILY SUBMITTING H FORMS TO US. NOW UNDER GST NOTF.NO.41/2017 INTEGRATED TAX DATED 23.10.2017 HAS COME WITH 0.1% GST. KINDLY SUGGEST US THE COMPLETE PROCEDURE OF THE SAID NOTIFICATION.

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