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GST
Indirect Taxation
Why is GST being made a destination based tax instead of a origin based tax? What's the reason ?
Answers (1)
Drawback of destination-based taxation is, the producing/selling state gets nothing while the consuming states receive complete share of revenue. But in the the long-term perspective, it can be a boon for less developed States who consume more than what they produce. This could be the reason why India sought destination based tax.
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