Q 5. What are the advantages of IGST Model?
Ans. The major advantages of IGST Model are:
a). A.Maintenance of uninterrupted ITC chain on inter-State 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.
