IGS tax (Integrated Goods and Services Tax) is levied on inter-state transfer of goods and services. IGST is charged and collected by the Government of India when there is any movement of goods and services from one state to another. For instance, suppose you are dealing with movement of goods from Rajasthan to Kerala, then IGST will be levied on such goods. The revenue generated out of IGST is shared both by the Central government and State government equally as per the tax rates fixed by the authorities.
The Centre levies such IGST on all inter-state supplies of goods and services which is applicable on imports in India and exports from India and on supplying activities related to SEZs or Special Economic Zones . Under IGST, exports from India are zero-rated. GST will not be levied on export of any kind of goods or services.
Instead of charging two separate tax for the Centre and the State for the supplies of goods and services from one state to another, the Central government collects IGST in an integrated manner which is later divided equally to the States. This IGST means Centre plus State tax and it is collected by the Government to ensure equal distribution between the Centre and the State Government. IGST makes the tax process easy specially for those involved in inter-state transactions of goods and services.
Hope this answer helps you.