‘INDIA TAXES’- A NARRATIVE REVIEW.

Commerce

Direct and indirect taxes make up India's tax structure, which is regulated by clear laws and regulations. The Income Tax Act of 1961 governs the imposition of direct taxes, such as corporate tax and income tax, on both individuals and corporations. Their compliance and collection are overseen by the Central Board of Direct Taxes (CBDT). Conversely, goods and services are subject to indirect taxes, the most notable of which is the Goods and Services Tax (GST), which went into effect in 2017. A dual system consisting of Central GST (CGST), State GST (SGST), and Integrated GST (IGST) simplified the tax structure by replacing several indirect taxes such as VAT, excise duty, and service tax. GST and other indirect taxes, including excise and customs duties on specific goods, are governed by the Central Board of Indirect Taxes and Customs (CBIC). India also uses tax-sharing arrangements, in which the Central and State Governments split revenues in accordance with the suggestions made by the Finance Commission. Furthermore, tax laws are updated often to increase effectiveness, lower tax evasion, and conform to international norms. While GST continues to develop through reforms and amendments, the proposed Direct Tax Code (DTC) seeks to further streamline direct tax laws. Taxation is an essential component of India's financial system since its tax laws guarantee adherence, openness, and economic expansion.

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