Glossary · GST & Indirect Tax
IGST
Integrated Goods and Services Tax — levied by the central government on inter-state supply of goods and services and on imports.
IGST is governed by the Integrated GST Act, 2017. It applies to any supply where the place of supply is in a different state from the place of supplier, and to imports. The rate equals CGST + SGST of the destination state. IGST revenue is shared between the Centre and the consuming state. IGST credit is the most flexible — it can be used first against IGST, then against CGST or SGST in any proportion.
Examples
A Delhi-based seller supplies goods worth ₹50,000 to a customer in Karnataka. Since this is an inter-state supply, IGST at 18% = ₹9,000 applies.