India has multiple taxation environment, Constitution provides powers to levy taxes to both State and Central governments. There are few types of taxes which are levied by local authorities
Taxes are broadly classified into direct taxes and indirect taxes.
Direct taxes are generally levied by Central government and Indirect taxes are levied by both central and state government depending upon the nature of goods and services
During last few years, the both central government and state government have undertaken various policy reforms and made efforts to reduce the multiplicity of taxes into single sales tax regime. This has evolved as Goods and Services Tax (GST).