Transfer Mechanism between GOI and States :

• Settlement between GOI and State Government of the buying dealer would not be dependent on the settlement between State Government of selling dealer and GOI.

• State Government of the selling Dealer to transfer SGST credit used (for payment of IGST) to GOI. Filing of valid return with full supply and purchase statement by selling Dealer to trigger transfer of SGST credit (claimed and utilized by him for payment of IGST) to GOI.

• GOI to transfer IGST credit used by buying Dealer (for payment of SGST) to the concerned State. Filing of valid return with full supply and purchase statement by buying Dealer to trigger transfer of IGST credit (claimed and utilized by him for payment of SGST) to the concerned State.

• All Govt. Departments / persons dealing in non-GST goods / exempted goods or services making inter-State purchases, would be given Departmental Ids by the State governments, which would be quoted by suppliers in invoices for inter- State B2C supplies. SGST portion of IGST paid in respect of such supplies would be transferred by GOI to the concerned State.

• Inter-Government settlement should be completed within last day of the month subsequent to the tax period.