Integrated Goods and Services Tax is applied and collected by the Central Government when goods and services are supplied and consumed between two or more states.

Example:
For example:
Lakshmi, a cloth dealer in Kerala, sold a Salvaar-Kameez set for 1000 rupees to Pallavi who lives in Bihar. The GST on this transaction is 18% thus, 180 rupees will go to the central government as IGST.