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<h1>IGST Model preserves input tax credit continuity, reducing upfront tax burdens and promoting tax neutrality and compliance.</h1> IGST Model preserves an uninterrupted Input Tax Credit chain for inter-State supplies by allowing credit to be used in payment of tax, avoiding refund claims from exporting States and minimizing upfront tax payments or fund blockage. It promotes tax neutrality, applies to B2B and B2C transactions, requires simple accounting with no additional compliance burden, operates as a self-monitoring mechanism, and aims to improve compliance and collection efficiency.
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