The tax structure in India can be classified into two main categories:
Direct Tax
Indirect Tax

Direct Tax: It is defined as the tax imposed directly on a taxpayer and is required to be paid to the government. Also, an individual cannot pass or assign another person to pay the taxes on his behalf.

Income Tax: It is the tax applicable on the income earned by an individual or taxpayer.

Corporate Tax: This is the tax applicable on the profits earned by companies from their businesses.

Some of the direct taxes imposed on an Indian taxpayer are:

Income Tax: it is the tax applicable on the income earned by an individual or taxpayer.

Corporate Tax: this is the tax applicable on the profits earned by companies from their businesses.

Indirect Tax: It is defined as the tax levied not on the income, profit or revenue but the goods and services rendered by the taxpayer. Unlike direct taxes, indirect taxes can be shifted from one individual to another. Earlier, the list of indirect taxes imposed on taxpayers included service tax, sales tax, value added tax (VAT), central excise duty and customs duty.

However, with the implementation of goods and services tax (GST) regime from 01 July 2017, it has replaced all forms of indirect tax imposed on goods and services by the state and central governments.

GST has not only been reduced the physical interface but also lower the cost of compliance with the unification of the indirect taxes.