Prior to going on dialogue we ought to establish GST and the Goal supporting it.

What’s GST?

GST is a tax on goods and services with continuous and comprehensive chain of set-off advantages from the Producer’s point and Service provider’s point upto the merchant level. It’s essentially a tax only on value addition at every stage and a provider at each point is permitted to set-off through a tax credit mechanism. Under GST structure, all different phases of manufacturing and distribution can be interpreted as a mere taxation pass and the tax basically sticks final consumption within the taxing jurisdiction.

Objective behind GST

A) The incidence of tax simply falls on national consumption. B) The equity and efficiency of the system is already optimized. C ) There shouldn’t be any export of taxes across taxing jurisdictions. Chartered accountant ) The Indian marketplace should be incorporated into one common market. E) It enriches the reason for co-operative federalism.

Our comparative discussion will be based only on significant points assembling overall GST.


A dual structure was advocated from the EC. The Task Force has also recommended for its double levy imposed concurrently by the centre and the nations, but independently to promote co-operative federalism. Both the CGST and SGST ought to be levied on a common and indistinguishable base.

Both have suggested for consumption type GST, which is, there should be no differentiation between raw materials and capital goods in permitting input . The tax base should extend over all goods and services upto final consumption stage.

Also both are of the opinion that the GST should be ordered on the destination principle. According to Task Force this will lead to the shift from production to consumption where imports will be responsible to both CGST and SGST and exports must be relieved of the load of goods and services tax by no rating. Consequently, earnings will accrue to the state where the consumption takes place or is required to take place.

I.e., let credit for tax paid on all of intermediate goods and services on the basis of bills issued by the supplier. This will facilitate elimination of this cascading effect at various stages of manufacturing and supply.