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What are the advantages of IGST Model?

The major advantages of IGST Model are:

a. Maintenance of uninterrupted ITC chain on interState transactions;

b. No upfront payment of tax or substantial blockage of funds for the inter-State seller or buyer;

c. No refund claim in exporting State, as ITC is used up while paying the tax;

d. Self-monitoring model;

e. Ensures tax neutrality while keeping the tax regime simple;

f. Simple accounting with no additional compliance burden on the taxpayer;

g. 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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