Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Integrated GST applies to inter-state supplies and imports, collected by the central government for apportionment to destination states.
IGST is the GST when goods or services move between states — like ordering online from another state.
E-commerce and inter-state B2B rely on IGST mechanism. Exporter can claim IGST refund on zero-rated supplies. IGST credit chain prevents cascading across state borders before settlement to consuming state.
Delhi company sells ₹5 lakh software to Mumbai client: 18% IGST ₹90,000 charged. Maharashtra ultimately receives state share via IGST settlement.
Branch transfers may attract IGST on self-supplies per GST rules when entities have different GST registrations across states.
Centre collects IGST; consuming state receives its share through clearing mechanism per GST Council formula.
ITC utilisation follows prescribed order — IGST credit applied to IGST, then CGST, then SGST liabilities as per rules.