Allocation of IGST?

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404 Points Posted on 28 March 2020
Is IGST allocated between center and state in 50%-50% manner or is there any other manner of distribution?
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On 28 March 2020 at 11:49 Report
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This discussion clarifies how IGST (Integrated Goods and Services Tax) is allocated between the central and state governments. Unlike CGST and SGST which are collected directly by the respective governments, IGST is collected by the Central Government. The core of the query is about the proportion in which this collected IGST is then distributed to the states. While the exact mechanism is detailed in the GST (Compensation to the States) Act, the general understanding is that a portion is allocated to the state government where the supply's Place of Supply (POS) is located.

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"Do the Right Thing...!!!"
128157 Points Posted on 28 March 2020
The IGST allocated to first CGST fully after that SGST...

(My reply except IGST set off as per Your query ).
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On 28 March 2020 at 12:11
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404 Points Posted on 28 March 2020
I think you answered about manner of "ITC" distribution of IGST.
My query is IGST which I have paid , how will it be allocated between central and state government (50-50) or Is there any other manner of settlement?
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On 28 March 2020 at 12:22
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"Do the Right Thing...!!!"
128157 Points Posted on 28 March 2020
Sorry dear, I can't understand...
Can You elaborate with some details...?!
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On 28 March 2020 at 12:32
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404 Points Posted on 28 March 2020
In an intra state supppy we pay Cgst and sgst .Cgst belongs to Central govt's revenue and sgst belongs to state govt's revenue (state where the destination of supply is there -POS).
Likewise, in inter state supply we pay IGST .This IGST is collected by CENTRAL GOVT and then distributed (a part of it ) to STATE GOVT also.
I AM ASKING THE MANNER (PROPORTION) OF ITS DISTRIBUTION.
IS IT 50% TO CENTRAL GOVT AND 50% TO STATE GOVT OR IS THERE ANY OTHER MANNER OF SETTLEMENT??
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On 28 March 2020 at 12:37
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"Do the Right Thing...!!!"
128157 Points Posted on 28 March 2020
Better to refer the details through the act. It's to clear Your doubts "GST (Compensation to the States) Act"
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On 28 March 2020 at 12:43
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404 Points Posted on 28 March 2020
Thank you.
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On 28 March 2020 at 12:45
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Student CA Final
288 Points Posted on 28 March 2020
Dear Harshit
IGST credit first to be utilised with OUTPUT IGST .
Balance IGST Credit can be utlised in any ratio for OUTPUT SGST or OUTPUT CSGT.

It depends on you how you want to utilise your IGST credit against CGST AND SGST
take 50|50 or 70|30 or 100/0..any choice you want
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On 28 March 2020 at 13:12
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404 Points Posted on 28 March 2020
Please read the question again my 5th explanation,sir. You are mistaken.
It is not about "ITC"
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On 28 March 2020 at 13:14
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Consultant
1891 Points Posted on 28 March 2020

The manner of IGST distribution between Center & State have been mentioned in GST Compensations Act. 

 

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On 28 March 2020 at 14:01

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