The Goods and Services Tax (GS

GST follows a destination-based consumption tax principle — the tax revenue accrues to the state where the goods or services are ultimately consumed, not where they are produced or sold. This was a fundamental shift from the earlier origin-based taxation system. GST has a dual structure: CGST (Central) + SGST (State) on intra-state transactions, and IGST on inter-state transactions. IGST collections are apportioned to the consuming state. This principle ensures states where consumption is higher receive a greater share of GST revenue, aligning revenue with service delivery responsibilities.