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CA Intermediate · Taxation · GST in India - An Introduction

Under the GST law, which of the following is an essential feature of the dual GST model adopted in India?

Both the Centre and the States levy GST concurrently on the same taxable event, namely supply of goods or services. The Constitution gives both Parliament and State Legislatures power to legislate on GST, so goods and services are not divided between the Centre and the States.

  1. AOnly the Centre can levy tax on goods and only the States on services
  2. BBoth the Centre and the States levy tax on the same taxable event, the supply, with concurrent powers conferred by the ConstitutionCorrect
  3. CStates levy GST only on intra-State supplies of goods and the Centre only on imports
  4. DThe Centre levies GST on all supplies and distributes the whole to States

Explanation

The Constitution (101st Amendment) gives Parliament and State Legislatures concurrent power to make laws on GST. Both levy tax on the same transaction of supply, each collecting its own component, unlike the earlier regime where goods and services were split between Centre and States. The other options describe a split that does not exist.

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