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GST is often defined as “Destination-based tax”. What does this term mean?

Question

GST is often defined as “Destination-based tax”. What does this term mean?

Expert Answer
Answered 05 Aug 2022
3244 views

GST is levied by the taxing authority located at the place where the goods are ultimately consumed and not the place where the goods originate, thereby earning the name “Destination-based Tax”.

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