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
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