IGST for interstate transactions:-
In case of Inter State supply of goods and services, there will be integrated GST (IGST) imposed by Government of India [Article 269A(1) of Constitution of India inserted w.e.f. 16-9-2016].
Equivalent IGST (CVD) will also be imposed on imports [Exp lanation to Article 269A(1) of Constitution of India]
The IGST Rate is expected to be double the CGST rate.
IGST and CGST rates will be same all over India and will not vary from State to State. Otherwise there will be utter chaos.
Revenue from IGST will be apportioned among Union and States by Parliament on basis of recommendation of Goods and Service Tax Council [Article 269A(2) and Article 270(1A) of Constitution of India inserted w.e.f. 16-9-2016].
This apportionment will be required as input tax credit of IGST can be used for SGST and vice versa.
Since IGST will be on ‘supply of goods or services’, IGST will be payable on inter-state stock transfers, branch transfers etc.
However, CGST, SGST, UTGST or IGST will not be payable if goods are sent for job work outside the factory.