Question

GST system is termed as dual model because -

(a) It is online mode of transaction.
(b) Equal amount of tax is levied by state and central government
(c) It has state wise registration of traders
(d) Many indirect taxes are included under GST​

Answer 1

Answer:

b is correct

Answer 2

GST system is termed as dual model because --

(B) equal amount of tax is levied by state and central government.

Explanation : GST, the goods and service tax, is implemented in India 1 July 2017. It is regarded as one of the biggest tax reform bill till date.

There are two bodies works to serve the public of India, state and central. To work independently, they require money which comes from different type of taxes. To prevail both bodies, GST has imposed dual model, one for state government and the other for central government. Both CGST and SGST operate over a common base, that is, the base is identical.

Therefore the correct answer is (b) equal amount of tax is Levied by state and central government.