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Dual GST Model & GST Structure In India

Many countries in the world have a single unified GST system i.e. a single tax applicable throughout the country. However, in federal countries like Brazil and Canada, a dual GST system is prevalent whereby GST is levied by both the federal and state or provincial governments. India is a federal country, which means there’s a division of power between the federal government and the state governments. Before GST, this meant that each state had its own tax system in addition to the central government’s tax system. As a result, business owners had to deal with a variety of complicated state and federal taxes for each sale. Since the taxes were often levied over each other, you ended up paying tax on tax, a problem called cascading taxes.

Source Taxguru

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