The Integrated Goods and Services Tax (IGST) Act, 2017 is an integral component of the Indian taxation system, enacted as part of the broader Goods and Services Tax (GST) reform. The IGST Act aims to streamline the indirect tax structure in India, making it more efficient and business-friendly. Some key aspects of the IGST Act, 2017 include:
i) Concept of IGST: IGST is a tax levied on the interstate supply of goods and services, in addition to Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST). IGST ensures that the tax is collected by the state where goods or services are consumed, rather than the state where they were produced or provided. This eliminates the need for multiple taxes, such as Central Sales Tax (CST), which were applicable before the implementation of GST.
ii) Levy and Collection: The IGST Act outlines the process for levying and collecting IGST on all interstate transactions. The tax is levied on the value of the goods or services supplied and is collected by the central government. The revenue is then shared between the central and state governments, as per the rules set by the GST Council.
iii) Zero-rated Supply: The IGST Act also covers the concept of zero-rated supply, which refers to the supply of goods or services that are subject to a 0% tax rate. This is applicable for exports and supplies to Special Economic Zones (SEZs), ensuring that Indian businesses remain competitive in international markets.
iv) Input Tax Credit: The IGST Act allows businesses to claim input tax credit (ITC) on the IGST paid for interstate purchases. This ensures that tax is levied only on the value-added component of goods and services and prevents the cascading effect of taxes, making the tax system more efficient.
v) Reverse Charge Mechanism: Under the IGST Act, the reverse charge mechanism (RCM) is applicable in certain cases. RCM requires the recipient of goods or services to pay tax on behalf of the supplier. This is generally applicable when the supplier is unregistered or when the supply involves certain notified goods or services.
vi) Anti-profiteering Measures: The IGST Act also contains provisions to curb profiteering by businesses, ensuring that the benefits of reduced tax rates and ITC are passed on to the consumers.
vii) Penalties and Offenses: The IGST Act prescribes various penalties and offenses for non-compliance with its provisions, such as evasion of tax, fraud and supply of counterfeit goods.
The IGST Act, 2017 is a significant step towards a more unified and efficient indirect tax system in India. It helps reduce the complexity and cascading effect of taxes, thereby promoting ease of doing business and fostering economic growth. However, it is essential for businesses to understand and comply with the provisions of the Act to avoid penalties and legal complications.
Chapter-wise/ Section-wise Index of the Integrated Goods and Services Tax (IGST) Act, 2017 relating to provisions for levy and collection of tax on inter-State supply of goods and services by the Central Govt., as notified/ amended by Govt. of India/ CBIC from time to time:
1. CGST/ IGST (Extension to J&K) Ordinance/ Act 2017
Note: The IGST Act 2017 has been notified vide GOI Notification dated 12/04/2017, which has subsequently been amended through IGST Extension to J&K Act 2017, IGST (Amendment) Act 2018. Finance Act 2019, Finance Act 2020, Finance Act 2021, Finance Act, 2022 and Finance Act, 2023, including various Notifications issued by the Govt./ CBIC from time to time, relating to the commencement dates of various Sections/ Provisions in the respective IGST/ Amendment Acts, wherever required. Information on this page is a Section-wise compilation of the Amendments made by various Notifications issued by CBIC from time to time, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.
|CBIC Updates (GST)|
|Index of GST Circulars, Notifications, Press Releases, Orders, etc. issued by CBIC from 2017 and onwards along with Section-wise/ Rule-wise Text of GST Acts/ Rules:|
|CGST: CGST Act/ Definitions, CGST Rules, GST Forms|
|IGST: IGST Act/ Definitions, IGST Rules|
|UTGST: UTGST Act/ Definitions, UTGST Rules|
|GST Circulars (CGST/ IGST/ UTGST): 2023, 2022, 2021, 2020, 2019, 2018, 2017|
|GST Instructions: 2023, 2022, 2021, 2020, 2019, 2018, 2017|
|CGST Notifications: 2023, 2022, 2021, 2020, 2019, 2018, 2017|
|CGST Rate Notifications: 2023, 2022, 2021, 2020, 2019, 2018, 2017|
|IGST Notifications: 2022, 2021, 2020, 2019, 2018, 2017|
|IGST Rate Notifications: 2023, 2022, 2021, 2020, 2019, 2018, 2017|
|UT Tax/ UTGST Notifications: 2022, 2021, 2020, 2019, 2018, 2017|
|UT Tax/ UTGST Rate Notifications: 2023, 2022, 2021, 2020, 2019, 2018, 2017|
|Compensation Cess Notifications: 2023, 2022, 2021, 2020, 2019, 2018, 2017|
|Compensation Cess Rate Notifications: 2023, 2022, 2021, 2020, 2019, 2018, 2017|
|CBIC Orders (CGST/ IGST/ UTGST): 2023, 2022, 2021, 2020, 2019, 2018, 2017|
|CBIC Press Releases: 2020, 2019, 2018, 2017|
|Note: For Official/ updated copy, please visit the CBIC website.|