CONCURRENT AND NON-CONCURRENT DUAL GST – Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 7-1-2016 – Concurrent Dual GST Here the GST will be levied by both tiers of Governments concurrently. There will be Central GST to be administered by the Central Government and there will be State GST to be administered by State Governments. Thus, the GST would comprise a Central GST and State GST: a Central-level GST will subsume central taxes, such as, excise duty, CVD, SAD and service tax; and a State-level GST will subsume VAT, octroi, entry taxes, luxury tax, etc. Therefore, under this model, both goods and services would be subject to concurrent taxation by the Centre and the States. This variant is closer to the model recommende
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base of goods and services, at all points in the supply chain. It requires least change in infrastructure of tax departments at the Union and State levels. It improves the competitive environment for company working globally. As single taxation system it reduces cost to the consumer. Disadvantages It is not an ideal model. It can be a temporary or transitional model since tax would continue to be levied at two levels. Compliance costs may not reduce significantly. There will always be uncertainty since States might depart from the principles of uniformity. To frame a comprehensive model for taxation of inter-State transactions of goods and services and sharing of its revenue amongst the State will be a challenge. Non-concurrent Dual GST Und
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rvices. Under this model, while levying the VAT on services, the Centre would essentially play the coordinating role needed for the application and monitoring of tax on inter-State services. The Centre would withdraw from the taxation of goods. Even the revenues collected from the taxation of services could be transferred back to the States, partially or fully. Within this framework, cascading could be completely eliminated by the States agreeing to allow an input credit for the tax on services levied by the Centre. Likewise, the Centre would allow an input credit for the tax on goods levied by the States. However, the said model may not be acceptable to the Centre as well as the States. Moreover, constitutional amendment would still be req
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