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of <h1>Dual GST System Supports Fiscal Federalism, Allowing Central and State Governments to Collect Taxes Independently</h1> India's federal structure necessitates a dual Goods and Services Tax (GST) system, allowing both the central and state governments to levy and collect taxes. This dual system aligns with the constitutional division of powers, enabling each level of government to fulfill its distinct responsibilities and raise necessary resources. The dual GST framework supports fiscal federalism, ensuring that both the Centre and States can effectively manage their financial obligations as prescribed by the Constitution.
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