Tax goods and services (GST), the category tax applied to the various categories of goods and services are recognized as one of the most significant changes in indirect tax in India. GST is said to be a tax based on location or usage. Therefore, the location of use will determine the State that will collect the tax. Basically, taxes can be based on the origin or the source. Real estate tax or production tax is levied on the production of goods or services. Local taxes or usage taxes are levied on where goods and services are confiscated. In the area of tax-based taxation, estimates are allowed for non-existent tax rates, and the estimates are taxed in accordance with domestic production. Therefore, in terms of existing tax law, the collected SGST will generally increase in the State where the consumer of goods or services sold resides and not in the State where the goods are manufactured.
Authored by Rupa Paul, Amity University, Kolkata.