Why is Dual GST Required?

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Asked by Maxabout Team 138 Rep.

What is Dual GST (Goods and Services Tax) in India?

Naman Vashisht answered

    Dual GST is a system which is implemented in the federal government systems with both the Center and the State playing a role in the tax system. An SGST and CSGT are both applicable in the country.

    It will read to a major reduction in the number of taxes which are levied at the Central and State level

    • It will also lead to a decrease in effective tax rate for many goods.
    • t will cause the removal of the current cascading effect of taxes prevalent in the country.
    • It will cause reduction of transaction costs of the taxpayers through simplified tax compliance.
    • It will also cause increased tax collections due to wider tax base and better compliance which is a benefit to the government.
    Maxabout Team edited answer



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