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What are the advantages of IGST Model?

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The major advantages of IGST Model are:

  1. Maintenance of uninterrupted ITC chain on inter-State transactions;
  2. No upfront payment of tax or substantial blockage of funds for the inter-State seller or buyer;
  3. No refund claim in exporting State, as ITC is used up while paying the tax;
  4. Self-monitoring model;
  5. Ensures tax neutrality while keeping the tax regime simple;
  6. Simple accounting with no additional compliance burden on the taxpayer;
  7. 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.
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