IGST

The value-added tax levied on the majority of goods and services that are sold for domestic use is known or termed as GST or Goods and Service Tax. Consumers pay the GST, but it is paid back to the government. It is paid back by the people who sell these goods and services. There are four types of GST: the Integrated Goods and Services Tax (IGST), the State Goods and Services Tax (SGST), the Central Goods and Services Tax (CGST), and the Union Territory Goods and Services Tax (UTGST). Each of them has a different taxation rate.

GST

The GST (Goods and Service Tax) is an indirect National sales tax levied on the price of specific goods and services. The GST is added to the product’s price by the business, and the customer pays the product’s price which already includes GST. The Goods and Service Tax (GST) portion is accumulated and is paid to the government by the businessmen or sellers. In some countries, it is also known as Value-Added Tax (VAT). Let us look at some Key points of GST:

• The tax on goods and services which are being sold domestically for direct consumption is known as GST or Goods and Service Tax.
• The Final Price of the products includes GST in it which is paid by consumers at the point of sale, with the seller passing it on to the government.
• The GST or Goods and Service Tax is a popular tax that is used by the vast majority of countries around the world.
• The GST is typically levied at a fixed percentage across the country.

What is IGST or Integrated Goods and Service Tax?

The full form of IGST is Integrated Goods and Service Tax. IGST (Integrated Goods and Service Tax) is a tax levied under the GST regime on interstate (between two states) supplies of goods and/or services, as well as imports and exports. The IGST Act governs the IGST. The Central Government is in charge of collecting taxes under the IGST. The Central Government divides the proceeds of taxation among the various states after they have been collected. For example, if a trader who belongs to West Bengal sells goods worth Rs.5,000 to a consumer in Karnataka, IGST will apply because the transaction is interstate. If the GST rate on the goods sold would then be 18%, the merchant will have to charge Rs.5,900 as the final price for the goods sold. Let us look at some advantages of IGST:

• It is a straightforward model that is transparent.
• Increases the country’s taxpayer process’s speed.
• IGST is the total of the CGST and the SGST.
• The documents do not need to be physically checked; they can be checked via the internet.
• There is no financial blockage.

Difference Between IGST and GST

There are a few differences between IGST and GST which are as follows:

• The primary distinction between IGST and GST is that Goods and Service Tax (GST) is a portion of income tax that must be paid to the ‘deductor’ when a gain or loss is made in the sale of goods and services. IGST, on the other hand, is a type of GST that must be paid by the vendor in the situation of interstate delivery of goods and services.
• GST (Goods and Services Tax) is an indirect national sales tax levied on the price of specific goods and services, whereas IGST is a combination of State and Central Goods and Services Tax.
• GST removes the hassle caused by that the Cascading Effect, whereas IGST accelerates the country’s taxpayer process.

Conclusion

GST, or Goods and Services Tax, is a value-added tax imposed on most goods and services sold for domestic use. The GST is paid by consumers, but it is refunded to the government. It is repaid by all those who sell such goods and services. IGST stands for Integrated Goods and Services Tax. The IGST (Integrated Goods and Services Tax) is a GST tax levied on interstate (between two states) supplies of goods and/or services, as well as imports and exports. The IGST is governed by the IGST Act. The Central Government takes care of collecting IGST taxes. After the proceeds of taxes have been collected, the Central Government splits them among the various states.