The Concept of GST Model in India. Top Highlight of Dual GST Model.
Basically, there are three GST Model. Top Highlight of Dual GST Model. Here, we discuss each GST Model in details.
- National GST Model
- State GST Model
- Dual GST Model
A. Non Concurrent Dual GST Model
B. Concurrent Dual GST Model
1. National GST Model:
National GST Model Means Tax levied by Centre with sharing of revenue with state. Central Government share Tax revenue with the State Government. This model is adopted in many countries. For example, Australia and China.
2.State GST Model:
State GST Model Means Tax levied by the state and retained by the state themselves. In this model, Tax Revenue is not share with Central Government. Thus, this model is adopted in developed countries. For example, USA.
3.Dual GST Model:
Normally, there is two type of Dual GST Model. Which are as follows.
A.Non Concurrent Dual GST Model:
In Non Concurrent Dual GST Model Centre levies GST on services and levies GST on goods.
B.Concurrent Dual GST Model:
Tax levied by Centre & state on the both goods and services. This model is adopted in many countries. For example, Brazil, Canada and India. Therefore, India has adopted a Dual GST Model in view of the federal structure of the country.
In Dual GST Model, Centre and States will simultaneously Levy GST on taxable supply of goods or services or both which, takes place within a State or Union Territory. Thus, Tax is imposed concurrently by the Centre and States. Now, Centre also has the power to tax intra-State sales & States are also empowered to tax services.
GST extend to whole of India including the state of Jammu and Kashmir.
Top Highlight of Concurrent Dual GST Model:
- In Dual GST Model, both level of government are levy Tax.
- Tax on comprehensive set of goods and Services.
- Cross Set off of Input Tax credit not allowed.
- Strikes Balance of Fiscal autonomy between Centre and State.
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