← GlossaryPolicy & Tax
Indirect Tax
Indirect taxes, such as GST, customs duty and excise on fuel, are collected by sellers and passed on in prices. Everyone pays the same rate regardless of income, which makes them regressive: they take a larger share of a poorer person’s income.
Why It Matters
Most Indians pay far more indirect tax than income tax, often without noticing.
In India
A student who earns nothing still pays GST on every packet of chips and phone recharge.
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