IGST Act Chapter VIII: Apportionment and Settlement of Funds Between Central and State Governments Explained

Chapter VIII of the IGST Act, 2017, addresses the apportionment of Integrated Goods and Services Tax (IGST) and the settlement of funds between the Central and State Governments. It outlines the provisions for dividing IGST into Central GST (CGST) and State GST (SGST) components, particularly for inter-State and import transactions. The Act specifies the apportionment process, including the handling of interest, penalties, and refunds. It also details the transfer of funds to respective government accounts and provides guidelines for situations where supply classifications change from inter-State to intra-State, ensuring appropriate refunds and adjustments without incurring interest.