What is Indirect Tax?
5paisa Research Team
Last Updated: 27 Mar, 2025 11:39 AM IST

Content
- Introduction
- Different types of indirect taxes in India
- Features of Indirect Tax
- The Benefits of Indirect Tax
Introduction
Taxes are either direct or indirect. Direct taxes are applicable on income including salary, profits, or interest from a fixed deposit. But, what is the indirect tax meaning? An indirect tax applies to consumption. It is the tax on the price of goods or services the seller buys. Indirect taxes affect manufacturers or suppliers and are further paid by the final consumers.
For example, you go out for dinner and pay INR 3,150. This means the bill was INR 3,000, and you have paid a GST of 5%. All bills are subject to revealing the GST percentage and charges. This article focuses on the indirect tax definition and what is indirect tax with examples.
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Frequently Asked Questions
Yes, it can change from time to time, depending upon the regulatory authorities.
Yes, you may have to pay entertainment tax for the same.
No, customs duty applies to importers of goods manufactured abroad for commercial sale.