IGST (Integrated GST) is payable on supply of goods or services or both in inter-State supplies. IGST is intermediary tax mainly on B2B (Business to Business)  transactions. It is not envisaged as final tax as input tax credit of IGST will be available to recipient in another State. If IGST is paid on B2C transaction (Business to Customer), the State where goods or services or both are consumed will get their share of SGST.

IGST rate is double the CGST rate and will be uniform all over India. It will ensure that goods or services or both and taxes move together across the country, which will ensure seamless and tax free movement of goods and services within the country.

In view of IGST, there will be no need to claim refund of input taxes, except in case of physical exports and supplies to SEZ. Refund is also permissible in case of inverted duty structure i.e. tax on output is less than tax payable on inputs and input goods (except in few cases). Exports and supplies to Special

Economic Zones (SEZ) are zero rated i.e. input tax credit will be available even if tax is not paid on output. This will make exports and supplies to SEZ really tax free.

IGST concept of ‘supply’ instead of sales and removal of distinction between goods and services are game changers in GST. It is a unique concept nowhere else been tried in the world.