The major advantages of IGST Model are:
- Maintenance of uninterrupted ITC chain on inter-State transactions;
- No upfront payment of tax or substantial blockage of funds for the inter-State seller or buyer;
- No refund claim in exporting State, as ITC is used up while paying the tax;
- Self-monitoring model;
- Ensures tax neutrality while keeping the tax regime simple;
- Simple accounting with no additional compliance burden on the taxpayer;
- 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.