Integrated Goods and Services Tax (IGST) Rules, 2017 (Rule-wise)

The Integrated Goods and Services Tax (IGST) Rules, 2017, were introduced in India as a part of the Goods and Services Tax (GST) regime, which was implemented on July 1, 2017. IGST is a tax that is levied on the interstate supply of goods and services, which means it applies when goods or services are supplied between two different states or between a state and a union territory in India. The IGST Act, 2017 and its rules govern the administration and collection of this tax. Here are some key aspects of the IGST Rules, 2017 along with their implications:

1. Levy and collection: IGST is levied on the value of the goods or services supplied, in addition to any other taxes, duties, or charges levied under other laws. The tax is collected by the central government, which later distributes the revenue between the states involved in the interstate transaction.

2. Taxable event: The taxable event for IGST is the interstate supply of goods or services. This means that if a transaction involves the movement of goods or services between two different states or between a state and a union territory, IGST is applicable.

3. Place of supply: The place of supply is a crucial aspect of determining the applicability of IGST. It helps determine whether a transaction is intrastate or interstate. The place of supply is generally the location of the recipient of goods or services. However, specific provisions exist for certain situations, such as in the case of the supply of immovable property or transportation services.

4. Input tax credit: IGST paid on the supply of goods or services can be used as an input tax credit by the recipient. This helps businesses offset the IGST they pay on their purchases against the IGST they collect from their customers. The input tax credit mechanism helps to avoid the cascading effect of taxes and promotes seamless tax flow across state borders.

5. Reverse charge mechanism: Under certain circumstances, the recipient of goods or services is liable to pay the IGST under the reverse charge mechanism, rather than the supplier. This typically occurs when the supplier is unregistered or when specified goods or services are involved.

6. Zero-rated supplies: Exports and supplies to Special Economic Zones (SEZs) are considered zero-rated supplies, which means they are not subject to IGST. Instead, the supplier can either export or supply goods or services without payment of IGST and later claim a refund of the input tax credit or pay IGST on the supplies and claim a refund of the tax paid.

6. Registration: Businesses involved in interstate trade must register under the IGST regime. This is to ensure that they comply with the rules and regulations of the IGST Act and contribute to the tax revenue collected by the government.

In conclusion, the IGST Rules, 2017, were introduced to ensure the smooth implementation of the GST regime and to facilitate the seamless movement of goods and services across state borders in India. These rules aim to simplify the tax structure and promote a more efficient and transparent taxation system.

Integrated Goods and Services Tax (IGST) Rules, 2017 have been notified by Govt. on 28/06/2017 (effective as of 22/06/2017) followed with various amendment notifications issued by Govt./CBIC from time to time (i.e. 2017 onwards).

Rule-wise Index of the Integrated Goods and Services Tax (IGST) Rules, 2017, relating to provisions for levy and collection of tax on inter-State supply of goods and services (i.e. for carrying out the provisions specified in section 20 of the IGST Act, 2017) as notified/ amended by Govt. of India & CBIC from time to time:

—–

Note: The Integrated Goods and Services Tax (IGST) Rules 2017 were initially notified by CBEC vide Integrated Tax Notification 4/2017 dated 28/06/2017 (Rule 1 & 2). Subsequently, IGST Rule 3 has been inserted vide Notification 12/2017 and IGST Rules 4 to 9 have been inserted vide Notification 4/2018. Information on this page is a Rule-wise compilation of 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.