Question

Which model of GST has been chosen by India?

• A. UK
• B. China
• C. Canada
• D. USA

Answer 1

Answer:

C. Canada

India has adopted the Canadian model of GST which is a dual GST system. In this model, both the Central Government and the State Governments have the power to levy and collect GST on a common base. The components are:

• Central GST (CGST) collected by the Central Government,

• State GST (SGST) collected by the State Governments for intra-state transactions,

• Integrated GST (IGST) collected by the Central Government for inter-state transactions.

This model helps maintain the fiscal autonomy of both the Centre and the States while ensuring a unified tax system across India.