Goods & Services Tax

2. Goods & Services Tax is a holistic indirect tax on the sale,
consumption and manufacturing of goods and services in
its entire product cycle i.e. from manufacturing to the
consumer, throughout India. Goods and Services Tax or
India version of GST is a destination based tax proposed
by the government with the aim to eliminate several
indirect taxes like VAT, Central Excise Duty , Sales Tax,
Services Tax, etc. It is fondly describe as One Tax One
Nation . However, unlike GST of other countries , Indian
GST is actually a combination of three taxes- CGST, IGST
and SGST . Different countries follow different models of
GST. In India we follow Dual GST mode.

4. Under this option, state and central government would
combine their levies in the form of single national GST ,
with appropriate revenue sharing, arrangements among
them. In the case of a Central GST, the Centre will collect
the total tax revenue , whereas state government cannot
levy tax on goods and services.
The second model is to have a State GST in which the
States alone levy the Centre withdraws from the field of
GST or VAT completely. The loss to the Centre due to non
levying of tax is generally offset by a suitable
compensating reduction in fiscal transfers to the States.
This would significantly enhance the revenue capacity of
the States and reduce their dependence on the Centre.

5. Dual GST model is one in which both Centre as
well as state government charge as well as state
government charge GST, DUAL GST Model can be
divided into two categories:
Under this model, GST on goods can be
levied by States only and on services by Centre only. The States have
the power to levy the tax on the sale and purchase of goods , and the
Centre for taxation of services. Normally this model of GST is not
acceptable to the Centre as well as States.
It consist of both the Central GST and State
GST levied on same base. In this model, both goods and services would
be subject to concurrent taxation by the Centre and the States. All type
of goods and services will be brought under this proposed GST structure
except few exceptions. India and Canada follow the Concurrent Dual
GST Model.

6.  Introduced by the Howard
Government and commenced on 1 July
2000.
 Replacing the previous federal
wholesale sales tax system.
 Designed to phase out a number of
various State and Territory Government
taxes, duties and levies such as banking
taxes and stamp duty.

7.  Introduced in Canada on by
Prime Minister .
 Replaced the 13.5% Manufacturers Sales
Tax(MST).
 Government of Canada merged their
respective sales taxes into the Harmonized
Sales Tax(HST).
 HST is administered by the federal
government
 With the exception of Alberta, which does
not have a provincial sales tax

8. PARTICULAR
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INDIA CANADA AUSTRALIA