The IGST Act is short because section 20 borrows almost all of its machinery from the CGST Act — supply, valuation, credit, registration, returns, assessment, appeals, penalties and more. The provisos then adjust the borrowed rules where IGST must differ.
Key points
- Section 20 of the IGST Act, 2017 applies the CGST Act's provisions on 25 listed subjects — from scope and value of supply to appeals, offences and penalties — to integrated tax, "mutatis mutandis" and "so far as may be".
- Tax deducted at source under IGST is at 2% of the payment (first proviso).
- E-commerce operators collect tax at source under IGST at a notified rate not exceeding 2%; it has been 0.5% since 10.07.2024 (Notification 01/2024-Integrated Tax).
- The value of a supply for IGST includes taxes, duties, cesses, fees and charges under other laws, other than the IGST Act and the GST (Compensation to States) Act.
- From 01.11.2024 the pre-deposit for an IGST appeal before the Appellate Authority or the Appellate Tribunal is capped at Rs. 40 crore.
The provisions
20CGST provisions applied to IGST, and the IGST provisos
Statutory text
Subject to the provisions of this Act and the rules made thereunder, the provisions of Central Goods and Services Tax Act relating to,-
(i) scope of supply;
(ii) composite supply and mixed supply;
(iii) time and value of supply;
(iv) input tax credit;
(v) registration;
(vi) tax invoice, credit and debit notes;
(vii) accounts and records;
(viii) returns, other than late fee;
(ix) payment of tax;
(x) tax deduction at source;
(xi) collection of tax at source;
(xii) assessment;
(xiii) refunds;
(xiv) audit;
(xv) inspection, search, seizure and arrest;
(xvi) demands and recovery;
(xvii) liability to pay in certain cases;
(xviii) advance ruling;
(xix) appeals and revision;
(xx) presumption as to documents;
(xxi) offences and penalties;
(xxii) job work;
(xxiii) electronic commerce;
(xxiv) transitional provisions; and
(xxv) miscellaneous provisions including the provisions relating to the imposition of interest and penalty,
shall, mutatis mutandis, apply, so far as may be, in relation to integrated tax as they apply in relation to central tax as if they are enacted under this Act:
Provided that in the case of tax deducted at source, the deductor shall deduct tax at the rate of two per cent. from the payment made or credited to the supplier:
Provided further that in the case of tax collected at source, the operator shall collect tax at such rate not exceeding two per cent, as may be notified on there commendations of the Council, of the net value of taxable supplies:
Provided also that for the purposes of this Act, the value of a supply shall include any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier:
Provided also that in cases where the penalty is leviable under the Central Goods and Services Tax Act and the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, the penalty leviable under this Act shall be the sum total of the said penalties.
1[ Provided also that a maximum amount of forty crore rupees shall be payable for each appeal to be filed before the Appellate Authority or the Appellate Tribunal.]
1. Substituted by section 154 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024.
CBIC note 1 gives only the date of the Finance (No. 2) Act, 2024 (16.08.2024). The substituted proviso on the Rs. 40 crore pre-deposit cap took effect from 01.11.2024 (Notification 17/2024-Central Tax).
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- Does the CGST Act apply to IGST?
- Yes, on the 25 subjects listed in section 20 of the IGST Act, subject to the IGST Act's own provisions — which is why IGST is administered with the same registration, returns, credit, assessment and appeal rules.
- What is the TCS rate for e-commerce operators under IGST?
- 0.5% of the net value of taxable inter-State supplies, from 10.07.2024 (Notification 01/2024-Integrated Tax); section 20 allows up to 2%.
- What is the maximum pre-deposit for an IGST appeal?
- Rs. 40 crore for each appeal before the Appellate Authority or the Appellate Tribunal, from 01.11.2024.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
The 25 heads cover nearly everything an IGST taxpayer meets in practice: what a supply is, composite and mixed supplies, time and value of supply, input tax credit, registration, invoices, records, returns (other than late fee), payment, TDS and TCS, assessment, refunds, audit, search and arrest, demands, liability in special cases, advance rulings, appeals, presumption as to documents, offences and penalties, job work, e-commerce, transition, and the miscellaneous provisions including interest and penalty. They apply "subject to the provisions of this Act" — where the IGST Act has its own rule, as on place of supply or zero-rating, that rule prevails.
Late fee is the one return provision expressly excluded, so no separate late fee is levied under the IGST Act.