The tax is levied not on the income, profit, or revenue but on goods and services used 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 the goods and services tax (GST) regime from 01 July 2017, it has replaced all forms of indirect imposed on goods and services by the state and central governments.
