What is the full form of IGST?

IGST stands for "Integrated Goods and Service Tax".

This act is passed in the year 2017 through the Supreme Court of India. The IGST Act clarifies that the Centre would levy IGST which would be CGST plus SGST on all inter-State transactions of taxable goods and services with appropriate provision for consignment or stock transfer of goods and services.

In other means, the seller would have to pay IGST with the value after haggling with the government. The purpose of IGST is to provide better goods and services and it is applied to the imported goods.

For transactions that are look-alike of import transactions and export of goods and services, shall be deemed to be supplied in course of inter-state trade or commerce.

Interstate trade or commence will, therefore include:

1. Supplies made in the course of – Inter-state trade or commence
2. Import into Indian territory (deemed to be inter-state)
3. Export (deemed to be inter-state)

Thus, Integrated GST shall apply to inter-state transactions and import as well as export transactions (deemed to be inter-state transactions) relating to the supply of goods and/or services.

This act is implied in every state in India including union territories as well.