The dual structure of the GST in India is essentially a simple tax with different tax rates – the Central Goods and Services Tax (or CGST) and the State Goods and Services Tax (or SGST). As the name suggests, the dual structure of the GST implies that the central and state governments can collect and collect taxes through appropriate laws. The Economic Survey 2008-09 recommended that the government introduce the Goods and Services Tax (GST) across the country as part of ongoing tax reforms, while promoting a dual GST structure levied simultaneously by the centre and the state. The double TPS model can be simultaneous or non-simultaneous. In the simultaneous double TPS model, taxes are levied simultaneously but independently by the center and the states. It depends on where the goods and services are delivered. In contrast, the non-simultaneous dual GST model requires the property tax to be levied and collected by the states, while the services tax is collected and collected by the center. In India, a dual GST is proposed, where a central goods and services tax (CGST) and a government goods and services tax (SGST) are levied on the taxable value of each goods and services supply transaction. As we have discussed, India, a federal country, has given the states and the centre the power to collect and collect taxes through appropriate legislation, so this is the answer to the dual GST model adopted by which country. The two levels have different responsibilities depending on the branch of power prescribed by the Indian constitution, for which they must allocate resources. Therefore, a dual GST has been introduced nationwide as an ideal model that meets the country`s constitutional requirements. State GST and central GST are levied in parallel on each supply transaction of goods and services: India has introduced the “simultaneous double GST” model.
The need for the dual GST model is based on the premise that many countries around the world have a unified GST system, that is, a single tax that applies throughout the country. However, in states such as Brazil and Canada, a dual GST system is widespread, where GST is levied by both the federal government and state or provincial governments. India is a federal country, which means that there is a separation of powers between the federal and state governments. Before the GST, this meant that each state had its own tax system in addition to the central government tax system. As a result, business owners have faced a variety of complicated state and federal taxes for every sale. Because taxes were often levied on each other, you ended up paying taxes on taxes, a problem known as cascading taxes. This article provides full details on the dual GST taxation model, which is widely used by countries such as Canada, Brazil and India. The design of a target-based GST becomes extraordinarily complex in a country like India, where the power to tax domestic trade is divided between the state and the centre.
A conventional national GST cannot be implemented without states losing their autonomy. This is where the dual GST model comes into play, meaning that GST is levied on supply by central and state governments. According to the constitution, the structure of the dual GST model is currently divided between the centre and the state. In some transactions, the possibility of taxation is given to the center, while in other cases, the focus is on the state. Given the dual authority to tax a transaction under the GST, the structure is referred to as the GST DUAL model. It is adopted as a feasible solution for the Indian scenario. With this article, we will understand the main features of the dual TPS model and various important aspects of it. In other words, under the dual GST structure, central and state governments can collect and collect taxes through appropriate legislation. Goods and services are divided into five different tax blocks for tax collection: 0%, 5%, 12%, 18% and 28%. However, petroleum products, alcoholic beverages and electricity are not taxed under the GST, but are taxed separately by state governments under the previous tax system. [ref.
needed] There is a special rate of 0.25% on rough and semi-precious stones and 3% on gold.  In addition, certain items such as soft drinks, luxury cars and tobacco products are subject to a 22% exemption or other rates in addition to the 28% GST.  Before the GST, the statutory tax rate for most products was about 26.5%, after the GST, most products should be in the 18% tax zone. Unhealthy competition between states could use the tax structure to attract industries if a single GST were introduced. The dual model is more efficient and practical, and a complete withdrawal of the state tax center could affect the center`s ability to generate revenue symmetrically. The dual GST structure is a transparent and simple tax model with a predefined set of CGST and SGST rates.