Commerce · Class 11 Commerce
Ch 33Indirect Taxation — Class 11 Commerce, concept-first.
Unlike a direct tax, whose impact and incidence fall on the same person, an indirect tax is a tax whose impact (the person who initially pays it to the government) falls on one person, while its incidence (the ultimate burden) can be shifted to another person — typically the final consumer, through the price of a good…
Key concepts
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Indirect Tax — Meaning, Merits and Demerits
An indirect tax's impact falls on one person but its incidence (final burden) can be shifted to another, typically the consumer, through price.
Most relevant Q&A
- What is an indirect tax? State its merits and demerits.Free
- What indirect taxes existed in India before GST? Why were they replaced?Free
- What is the meaning of indirect tax? Give two examples.Preview
- (a) Distinguish between Direct taxes and Indirect taxes. (Any 5) OR (b) Explain the coastal trade in ancient Tamil Nadu.Preview
Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Meaning of Indirect Tax
Unlike a direct tax, whose impact and incidence fall on the same person, an indirect tax is a tax whose impact (the person who initially pays it to the government) falls on one person, while its incid…
Merits and Demerits of Indirect Taxes
Merits of indirect taxes: - Wide coverage — indirect taxes are paid, in small amounts, by every consumer who buys a taxed good or service, spreading the tax base across virtually the entire population…
Indirect Taxes Before GST
Before 1st July 2017, India's indirect tax system was a patchwork of several separate central and state-level taxes, each with its own rules, rates, and compliance procedures.
Goods and Services Tax (GST) — Meaning and Objectives
Goods and Services Tax (GST) is a single, comprehensive, destination-based indirect tax levied on the supply of goods and services, which replaced most of the earlier central and state indirect taxes…
Structure of GST — CGST, SGST/UTGST and IGST
India follows a dual GST model, since both the Centre and the States/Union Territories have the constitutional power to levy tax on the same taxable supply of goods/services.
Input Tax Credit and the GST Council
Input Tax Credit (ITC) is the mechanism at the heart of GST's cascading-effect solution: a registered dealer who has paid GST on their inputs (goods/services purchased for use in their business) can c…
Customs Duty
Customs Duty is a tax levied by the Central Government on goods imported into, and certain goods exported from, India, under the Customs Act, 1962 and the Customs Tariff Act, 1975.
Merits and Demerits of GST
Merits of GST: - Removes the cascading effect of tax-on-tax through the Input Tax Credit mechanism. - Creates a genuine single national market, since goods can now move across state borders without th…
Exercises
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- Q1What is an indirect tax? State its merits and demerits.Free
- Q2What indirect taxes existed in India before GST? Why were they replaced?Free
- Q3What is GST? State its objectives.Free
- Q4Distinguish between CGST, SGST and IGST, with an example of when each applies.Preview
- Q5A dealer in Tamil Nadu sells goods worth ₹50,000 to a customer within Tamil Nadu (an intra-state sale). GST is charged at an illustrative ra…Preview
- Q6A dealer in Tamil Nadu sells goods worth ₹80,000 to a dealer in Kerala (an inter-state sale). GST is charged at an illustrative rate of 18%.…Preview
- Q7What is Input Tax Credit? Explain its importance under GST.Preview
- Q8What is Customs Duty? Is it subsumed under GST?Preview
- Q9What is the role of the GST Council?Preview
- Q10"GST is a destination-based consumption tax." Explain this statement.Preview
Sample & Board Papers
Sample papers and previous-year board questions for this subject.
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- Q1What is IGST ? (a) Integrated Goods and Service Tax (b) Indian Goods and Service Tax (c) Initial Goods and Service Tax (d) International Goo…Preview
- Q2Write a note on SGST.Preview
- Q3GST stands for: (a) Goods and Services Tax (b) Goods and Supply Tax (c) General Sales Tax (d) Government Sales TaxPreview
- Q4What is the meaning of indirect tax? Give two examples.Preview
- Q5(a) Distinguish between Direct taxes and Indirect taxes. (Any 5) OR (b) Explain the coastal trade in ancient Tamil Nadu.Preview
- Q6What are the objectives of Goods and Service Tax (GST) ? (Any 3)Preview
- Q7What kind of Tax is GST ? (a) Indirect Tax (b) Depending upon the type of Goods and Services (c) Direct Tax (d) All of the abovePreview
- Q8In India GST became effective from? (a) 1st April 2017 (b) 1st January 2017 (c) 1st July 2017 (d) 1st March 2017Preview