Reviewed by Oct 05, 2020| Updated on
Indirect tax is defined as the tax imposed by the government on a taxpayer for goods and services rendered. Unlike direct taxes, indirect tax is not levied on the income, revenue or profit of the taxpayer and can be passed on from one individual to another.
Custom Duty is to be paid by an importer or exporter for the goods imported or exported out of India.
Excise Duty is levied on goods which are manufactured in India. Till 30 June 2017, most of the goods came under its net. Later, GST was introduced which subsumed Excise duty. But there are some goods that still fall under the excise laws such as tobacco products, aviation turbine fuel, natural gas, high-speed diesel and petroleum crude.
Goods and Services Tax (GST) refers to the tax on supply of goods or services that must be paid by individuals or businesses who have a turnover more than the prescribed limit.
GST is imposed at every point of supply. Also, State GST and Central GST are applicable when intra-state sales take place. However, in the case of inter-state sales, an Integrated GST is applicable.
Since its implementation, GST has been able to remove the ‘cascading effect or the 'tax on tax' dilemma in the country. With the elimination of the tax on tax quandary, the markets have witnessed a considerable drop in prices.
Also, with GST being more of a technology-driven process, the need for a physical interface has been brought down considerably. An online GST portal which allows registration, GST return filing, application for refund ensure a smooth and transparent GST filing process.