What are the different types of indirect taxes?

There are several types of indirect taxes, which are discussed hereunder: Goods and Services Tax (GST): As the name suggests, GST is a single tax imposed on the supply of goods and services. Further, under the GST regime goods and services are treated equally for the purpose of imposition of taxes.

How are indirect taxes different from direct taxes?

The various intermediaries pass that tax to the consumers, which is paid to the government first. The chances of evading indirect taxes are lesser than direct taxes, as, in the case of indirect taxes, the taxes are already embedded in the prices of goods and services sold.

How do indirect taxes work?

The consumer is ultimately paying the tax by paying more for the product. In contrast to direct taxes, indirect taxes are taxation on an individual or entity, which is ultimately paid for by another person. The body that collects the tax will then remit it to the government.