My dear friends before we understand the Goods and Services Tax (GST) let me introduce to you about Taxes in India taxes in India or simply we can say tax system in India and before understanding tax system let me explain to you how the government functions.
Friends like in any welfare state government has to bear so many developmental expenses and for this money in the form of taxes collected from the people of the country. So, for this government has to levy taxes on people of the country. At present this is the primary source of income for the Government and this money is used in developmental work in the country.
Now let’s talk about Texas. So, Texas can be of two types
- Direct Taxes: – So let’s talk about in detail about direct taxes are directly imposed on taxpayers’ that is the burden of tax cannot be shifted to another person, the taxpayer has to pay taxes directly to the government in this case. E.g. Income tax, Corporate tax, Wealth tax, Gift tax, Estate duty, Expenditure tax, Fringe Benefit Tax etc.
- Indirect Taxes: – On the other hand taxes the burden of which can be shifted to another person and ultimate burden has to be bear by the person consuming/using the goods or services. E.g. Service tax, Excise duty, Value added tax, Custom duty, Securities Transaction Tax (STT), Stamp Duty, Entertainment tax etc.