Understanding the full form of IGST is essential for young professionals like you, as it plays a significant role in various industries across India. In this article, we will explore the meaning and significance of IGST and discuss its scope and functions.
What is IGST Full Form?
IGST stands for Integrated Goods and Services Tax. It is a part of India's Goods and Services Tax (GST) regime. IGST applies to inter-state transactions, where goods or services are sold from one state to another. Its main role is to simplify tax procedures for businesses involved in inter-state trade by combining the Central GST (CGST) and State GST (SGST) components into one tax.
History and Scope of IGST
The introduction of GST in India in July 2017 marked a significant tax reform aimed at streamlining indirect taxes. However, it presented challenges regarding inter-state trade taxation. To address this, IGST was introduced as a mechanism to facilitate the smooth flow of goods and services between states.
IGST applies to both goods and services, unlike CGST and SGST, which are levied on intra-state transactions only. It ensures that tax revenues are shared between the originating state and the destination state based on predetermined principles.
Functions of IGST
- IGST collects tax on interstate supplies of goods and services.
- It distributes the collected revenue between the centre and states based on predetermined sharing mechanisms.
- IGST enables the seamless movement of goods across state borders by eliminating multiple taxation points.
- It allows small taxpayers with limited turnover to opt for a composition scheme under which lower taxes can be paid.
- The mechanism provides for refunds in cases of excess or unutilized input tax credit, promoting ease of doing business.
How to Register for IGST
- Obtain a valid PAN (Permanent Account Number), as it is mandatory for registration.
- Visit the GST portal and select "New Registration."
- Fill in the necessary details, such as name, email, mobile number, and state of the business.
- Provide documents such as proof of identity, address proof, bank account details, and business registration documents.
- After verification, you will receive an Application Reference Number (ARN).
- The final step is to digitally sign the application using a Digital Signature Certificate (DSC).
- Once approved, you will receive your unique GSTIN (Goods and Services Tax Identification Number).
IGST Full Form: Unlock Your Potential
As you navigate through your career path, understanding IGST can open up various opportunities for you. Seek guidance from the experts at WiZR for upskilling opportunities related to this domain.
FAQs
1. What is the difference between CGST, SGST, and IGST?
CGST is levied by the central government on intra-state supplies, while SGST is imposed by state governments on intra-state transactions. On the other hand, IGST applies to inter-state transactions.
2. Can I register for IGST if my business operates only within one state?
No, IGST registration is not required if your business operates only within one state, as it applies to inter-state transactions.
3. Are there any specific qualifications required for pursuing a career in IGST?
There are no specific qualifications required for pursuing a career in IGST; however, having a background in finance or taxation can be beneficial.
4. How does IGST impact small-scale businesses and startups?
IGST provides a composition scheme that allows small-scale businesses and startups to pay lower taxes, making it easier for them to comply with tax regulations.
