THE INCIDENCE OF TAX :

The incidence of tax is perhaps the foundation stone of any taxation system. It determines the point at which tax would be levied , i.e. the taxable event. Presently different taxes in India have differing taxable events e.g. : V.A.T. is levied on sale and purchase of goods and follows the destination – based principle of taxation ; Excise tax is levied on the manufacture of goods and follows the origin-based principle of taxation. Similarly the taxable event for GST would be supply of goods and services and would follow the destination – based principle of taxation. The incidence of tax for CGST , SGST and IGST according to the Model Acts is explained as follows .