Question 5 - What are the advantages of IGST Model - FAQ on GST dated 21.9.2016 based on Draft Model GST

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.