IGST: Integrated Goods and Services Tax

When IGST applies

• Supplies where the location of the supplier and the place of supply are in different states or union territories
• Imports of goods, collected by customs along with customs duty
• Imports of services, usually paid by the recipient under reverse charge
• Supplies to or by SEZ units and developers
• Exports, where IGST is paid and refunded or the supply is made under LUT

Using IGST credit

Under Section 49 and Rule 88A, IGST credit must be used first, against IGST liability and then against CGST and SGST in any order and proportion. Only after IGST credit is fully used can CGST or SGST credit be used. This often helps businesses with accumulated SGST balances.

Wrong tax head

If you charged IGST on what was really an intra-state supply, or the reverse, pay the correct tax. Under Section 77 of the CGST Act and Section 19 of the IGST Act, the tax paid under the wrong head can be refunded, and no interest is charged on the correct tax in that situation.

IGST on imports

On imports of goods, IGST is paid at customs on the bill of entry along with basic customs duty. The importer then claims ITC of this IGST, and the bill of entry data appears in GSTR-2B for matching.

Get it handled for you

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This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.