What is Indirect Tax

Indirect Tax

About Indirect Tax

What is Indirect Tax

An indirect tax is one that is not paid directly by a person to the government but collected by an intermediary and passed on to the government. Indirect taxes are imposed on goods and services on the basis of production, supply, sale or purchase of products or provision of services, in the form of goods and services tax (GST).
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GST, rolled out in 2017, replaced various indirect tax laws that previously existed in India, such as import and export duty, excise, sales tax, value-added tax (VAT), service tax, entertainment tax, electricity duty, tax on passenger fares, freights etc.
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How are indirect taxes collected?
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An indirect tax is collected from the consumer by an intermediary, such as manufacturer, trader or service provider. The intermediary files a tax return and forwards the tax proceeds to the government with the tax return. The consumer bears the final economic burden of the tax by paying more for the product.
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By comparison, direct taxes are imposed on persons and collected by the government directly from those on whom they are imposed.
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In indirect taxation, the obligation of tax payment varies from one consumer to another, as these taxes are levied by the government on goods and services — not on the income, profit or revenue of an individual. These taxes can be shifted from one taxpayer to another. This is unlike direct taxes, which are borne by the person on whom the tax is levied.
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What is GST?
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GST was rolled out on July 1, 2017, as India’s most comprehensive indirect tax reform. It consolidated multiple indirect tax that existed previously into a single one. The implementation of GST aimed to make the indirect tax system more unified across the many states of the country. Read more... (/about/what-is-goods-and-services-tax)?

Latest Updates on Indirect Tax

Budget 2024: Here's what FM Nirmala Sitharaman said about income tax

3 min read Last Updated :Feb 01 2024 | 1:23 PM IST
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Interim Budget: FM sticks to fiscal consolidation path in Budget speech

2 min read Last Updated :Feb 01 2024 | 12:35 PM IST
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Union Budget 2024: 10 terms to boost the know-how of key financial exercise

4 min read Last Updated :Jan 03 2024 | 4:15 PM IST
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Understanding GST revenue performance

6 min read Last Updated :Jan 01 2024 | 10:42 PM IST
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GST receipts decline to three-month low but hold on to Rs 1.65 trn in Dec

3 min read Last Updated :Jan 01 2024 | 11:34 PM IST
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GST mop-up rises 15% to Rs 1.68 trn; two-wheeler sales enter fast lane

4 min read Last Updated :Dec 01 2023 | 11:08 PM IST
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AAR under GST plagued by conflicting rulings, quality of orders

6 min read Last Updated :Nov 28 2023 | 4:49 PM IST
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Nine-year shift: Taxpayers' income distribution less tilted to super-rich

2 min read Last Updated :Oct 26 2023 | 11:13 PM IST
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DGGI serves Rs 55k crore tax notices to gaming firms, biggest to Dream11

3 min read Last Updated :Sep 26 2023 | 9:54 AM IST
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CBIC mulling organisational restructuring to make it more effective

2 min read Last Updated :Aug 06 2023 | 1:11 PM IST
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CBIC slaps Rs 942 crore demand notice on HDFC Life Insurance Company

2 min read Last Updated :Jun 23 2023 | 10:06 PM IST
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50,000 cases to be taken up for GST audit in FY24, says CBIC chairman

4 min read Last Updated :Jun 15 2023 | 12:00 AM IST
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Centre to come up with pre-filled GST return forms by year-end: Report

2 min read Last Updated :Jun 12 2023 | 10:13 AM IST
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CBIC circular on pre-import violation cases

3 min read Last Updated :Jun 11 2023 | 6:37 PM IST
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GST and states, a reality check of how indirect tax system is working

2 min read Last Updated :May 05 2023 | 12:07 PM IST
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Intra-company services by offices registered separately to attract GST: AAR

2 min read Last Updated :Apr 18 2023 | 7:45 PM IST
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CBIC extends interest waiver on customs duty payable via ECL till April 13

1 min read Last Updated :Apr 12 2023 | 12:24 PM IST
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GST mop up at all-time high of Rs 18 trillion in FY23, shows data

1 min read Last Updated :Apr 02 2023 | 10:57 PM IST
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Feb GST collection up 12% YoY to Rs 1.49 trn, dips month-on-month

3 min read Last Updated :Mar 02 2023 | 12:29 AM IST
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GST Council will decide on cement tax rate after expert study, says CBIC

1 min read Last Updated :Feb 10 2023 | 3:25 PM IST
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