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<h1>Dual GST preserves fiscal federalism by allowing Centre and States to raise taxes separately to fund distinct responsibilities.</h1> A Dual GST is required to align taxation with the constitutional allocation of fiscal powers between the Centre and the States: both levels have distinct responsibilities and tax-raising needs, and a dual structure permits each tier to enact and collect taxes through appropriate legislation to fund their functions, thereby operationalising fiscal federalism and preserving the resource base of both governments.
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