Indirect taxes are levies on goods and services rather than on income or profits. The tax burden may eventually fall on the final consumer, though the tax is collected (or remitted) through intermediaries like manufacturers, retailers, importers, etc.
They contrast with direct taxes (like income tax, corporate tax) where the person or entity bearing the tax is the one on whom it is imposed.
Goods and Services Tax (GST) — Introduced on 1 July 2017. It subsumed many earlier indirect levies (VAT, service tax, etc.), with a unified structure for supply of goods and services across the country.
Customs Duty — Levied on import and export of goods. It’s a tool of trade policy as well as revenue generation.
Previously, other indirect taxes (many of which are now merged into GST) included: Excise Duty, Service Tax, Value-Added Tax (VAT), Entertainment Tax, Octroi, etc.
Consumption-basis: The tax is triggered when goods/services are consumed.
Shifting of Tax Burden: Though the intermediary (say, a manufacturer or retailer) remits the tax, the final consumer often bears its economic burden via higher prices.
Wide Tax Base: Because many goods and services are taxed, indirect taxes cover a broad spectrum.
Potential for Regressive Impact: Since everyone (rich and poor) consumes goods and services, and the rate is often the same, low-income consumers may spend a larger proportion of their income on such taxes.
Inflationary Effect: Because indirect taxes are embedded in the price of goods/services, increases in tax rates or new levies can push up retail/consumer prices.
Regulating Authority: The Central Board of Indirect Taxes and Customs (CBIC) is the main administrative authority for indirect taxes in India.
GST Legislation: There are several laws related to GST (Central GST Act, State GST Acts, Integrated GST, etc.) governing how tax is collected, input credits, registration, rates, etc. Apni Law+1
Mobilise revenue to the government in a relatively stable way.
Simplify tax regime by consolidating many smaller indirect taxes (as GST did).
Avoid cascading (tax on tax) via mechanisms like input tax credit.
Support trade and regulate imports/exports via customs duties.
Use differential rates (e.g. higher duty on harmful goods, lower rates or exemptions on essentials) to achieve socio-economic policy aims.
Complexity in compliance, especially for small businesses (registration, maintaining records, returns).
Keeping multiple tax rates, exemptions, notifications etc. can lead to litigation, confusion.
Ensuring that input credits are properly claimed and passed along the chain.
Cross-border transactions and interpretation under customs and GST law can be tricky.
Ensuring fairness / equity — avoiding undue burden on low-income consumers.
Please Follow Lawmart Shipping & Delivery Policy - https://www.lawmart.in/shipping_delivery.php
Please Follow Lawmart Return & Cancellation Policy - https://www.lawmart.in/return_cancellation.php
| Mahesh P. Gour, K.M. Bansal Indirect Tax Laws |
Ready to Wear Clothing
Color: Gray
1 X $113.88
We were affected by the fire next door and will remain closed until further notice.
Close
