GST What are the advantages of IGST Model?

Discussion in 'GST (Goods & Service Tax)' started by Raju Choudhary, Apr 20, 2017.

  1. Raju Choudhary

    Raju Choudhary Active Member Staff Member

    Ans. The major advantages of IGST Model are:
    • (a). Maintenance of uninterrupted ITC chain on inter-State transactions;
    • (b). No upfront payment of tax or substantial blockage of funds for the inter-State seller or buyer;
    • (c). No refund claim in exporting State, as ITC is used up while paying the tax;
    • (d). Self-monitoring model;
    • (e). Ensures tax neutrality while keeping the tax regime simple;
    • (f). Simple accounting with no additional compliance burden on the taxpayer;
    • (g). Would facilitate in ensuring high level of compliance and thus higher collection efficiency. Model can handle ‘Business to Business’ as well as ‘Business to Consumer’ transactions.

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