Quick Summary
The Government has outlined steps taken to strengthen the mechanism for apportionment and settlement of Integrated Goods and Services Tax (IGST) revenue between the Centre and States. The issue was addressed in Rajya Sabha Unstarred Question No. 1838 , answered by the Ministry of Finance on August 4, 2026. The response comes amid questions over concerns raised by States regarding IGST settlement, including possible discrepancies, delays and anomalies in the settlement process. Committee of O
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FAQ :
The new rules aim to strengthen the mechanism for apportioning and settling IGST revenue between the Centre and States, addressing concerns over discrepancies, delays, and anomalies.
A Committee of Officers was formed to examine issues related to IGST settlement and recommend measures for improvement, including legislative amendments, system enhancements, and formula refinements.
A Standard Operating Procedure (SOP) has been implemented to manage abnormal reversals of Input Tax Credit (ITC), which were identified as contributing to irregularities in the IGST settlement process.
Ineligible and time-barred credit will now be aligned with the structure of Form GSTR-3B, with certain STL categories related to domestic and import ineligible credit being merged.
The Goods and Services Tax Settlement of Fund Rules, 2026 were notified and published in the Gazette on March 30, 2026.
The GST Rules are being enhanced by incorporating corresponding section and rule numbers, along with sources, and providing clarifications in areas where existing rules lacked precision.
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