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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