India is a federal country where both the Center and the States have been assigned the powers to levy and collect taxes through appropriate legislation.Dual GST gives the same legal and systematic approach for the country to collect the tax.
Both the levels of Government have distinct responsibilities to perform according to the division of powers prescribed in the Constitution for which they need to raise resources.
A dual GST will, therefore, be in keeping with the Constitutional requirement of fiscal federalism.

Why we need GST?

Introduction of GST is considered to be a significant step in the reform of indirect taxation in India. Amalgamating several Central and State taxes into a single tax would help mitigate the double taxation, leading to a common national market. From the consumers point of view, the advantage would be in terms of a reduction in the overall tax burden on goods, which is currently estimated at 25%-30%. (Source: Wikipedia) Check features of GST

We have two types of Govt:
The Central Govt : Will collect CGST , Central GST that goes to the Central Govt from transactions all over India.
The State Govt : Will collect SGST, State GST that goes to the State Govt.

Prior to GST, State Govt used to collect taxes from transactions taking place within their state. GST has deprived them of their privilege to levy taxes on transactions and have to agree to the taxes structure imposed by the GST which is common and same all over the country.

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