Model of GST and Advantages of IGST

Models of GST

There are three prime models of GST:

Advantages of IGST Model

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.

Ref:

1. Balachandran V - Indirect Taxes

2. ICAI - Indirect Taxes

3. ICSI - Indirect Taxes

4. ICMAI - Indirect Taxes

5. LPU - Indirect Taxes

6. ClearTax.Com

7. Taxmann.Com

8. TaxGuru.Com

9. Quora.Com

10. cbic.gov.in