Working of GST in India UPSC - Target IAS Kannada

Working of GST in India The Goods and Services Tax (GST) is a destination-based, multi-stage, comprehensive tax system that integrates multiple indirect taxes into a unified framework. Its working mechanism ensures that tax is collected efficiently and equitably across the value chain while reducing inefficiencies in the taxation process. Key Principles of GST Working Dual GST Model: India adopted a dual GST structure, with taxation powers divided between the Centre and the states: Central GST (CGST): Collected by the central government on intra-state supplies. State GST (SGST): Collected by the state government on intra-state supplies. Integrated GST (IGST): Levied by the central government on inter-state supplies and imports. Destination-Based Tax: GST is levied at the point of consumption rather than the origin, ensuring that the revenue benefits the state where the goods or services are consumed. Mechanism of GST Working GST Registration: Businesses meeting the turnover threshold must regist…