Indirect Tax

• Incidence and impact fall on two different persons.
• Tax is receoverd from the assessee,who passes such burden to another person.Thus,it does not pinch the taxpayer.
• Levied on goods and services.Thus,this type of tax leads to inflation and have wider base.
• E.g.GST,Customs Duty ,etc.
• Regressive in nature i.e.,all persons will bear equal wrath of tax on goods or service consumed by them irrespective of their ability.
• Useful tool to promote social welfare by checking the consumption of harmful goods or sin goods through higher rate of tax.