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Under the dual model, the power to levy taxes is distributed between the center and the states. Accordingly, GST has four components: CGST, SGST, IGST, and UTGST. Dual GST gives the country the same legal and systematic approach to collecting taxes. Now it is easier to do business & it also reduces the prices for consumers. To get more information regarding how GST works in India, do check out Tax Guru.
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DUAL MODEL OF GST India has adopted a dual model of GST due to its unique federal nature. Under the dual model, tax is levied simultaneously by the centre & state on a common base. SGST SGST is levied on every intra state transaction (i.e. transaction within the state). CGST CGST is Central Goods & Service Tax. CGST is levied on every intra state transaction. IGST IGST is levied on every inter state transaction (i.e. transaction b/w two states) & is also levied on imports. UTGST UTGST would be levied on the supply of goods & services which take place in any of the union territories of India. In order to get more information about the dual model of GST & ,do checkout Tax Guru. how GST works in India W W W . T A X G U R U . I N