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Indirect Taxation

Indirect tax is not imposed directly on the income of the persons, as mentioned above. Instead, it is imposed on goods and services transacted which, in turn, increases the cost or MRP of those goods and services.
Unlike a direct tax, indirect tax should be borne by the end customer, rich and poor are treated alike.
There are many indirect taxes. Some of these are levied by the Central Government whereas some are levied by the State Government making the indirect tax system an extremely complicated system.The following is the list of indirect taxes, currently in India:

Goods and Services Tax (GST)
Customs duty
Excise duty (on Petrol, diesel, natural gas, alcohol)
Central Sales Tax (relevant for certain goods only)
Securities Transaction Tax (STT)
Stamp Duty
Entertainment Tax

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GST was introduced to replace multiple indirect taxes levied by State and Central Governments in order to simplify the indirect tax system. It has replaced almost 17 of the existing state and central indirect taxes such as central excise duty, additional customs duty, VAT, entertainment tax, service tax etc.

It is referred to as Goods and Services Tax because it is applicable on the supply of both Goods and Services.