It would be a dual GST with the Centre and States simultaneously levying it on a common tax base. The GST to be levied by the Centre on intra-State supply of goods and / or services would be called the Central GST (CGST) and that to be levied by the States would be called the State GST (SGST). Similarly Integrated GST (IGST) will be levied and administered by Centre on every inter-state supply of goods and services.

The Central GST and the State GST would be levied simultaneously on every transaction of supply of goods and services. Further both would be levied on the same price or value unlike State VAT which is levied on the value of the goods inclusive of CENVAT.

Under Article 269A of the Constitution, the GST on supplies in the course of inter-State trade or commerce shall be levied and collected by the Government of India and such tax shall be apportioned between the Centre and the States in the manner as may be provided by Parliament by law on the recommendations of the Goods and Services Tax Council.

The CGST and SGST would be levied at rates to be jointly decided by the Centre and States. The rates would be notified on the recommendations of the GST Council.

The Council in its meeting in November 2016 had agreed to a four-rate structure under GST of 5, 12, 18 and 28 per cent. The maximum rate that may be levied is 40%.

By June 3rd, the GST council has expanded the rate structure to eight viz, 0, 0.25, 3, 5, 12, 18, 28 and Cess.

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