Primarily, governments have two major avenues for raising funds - direct and indirect taxation. Direct taxes are imposed on individuals and corporations while indirect taxes are implemented on the sale of goods and services. For more insights on tax reforms, you may want to check out the Tax Administration Reform Commission (TARC) – Mandate, Report, Recommendations .
One of the significant revenue sources for the Indian Government is the Goods and Services Tax (GST). Other significant contributors include individual income tax, corporation tax, and customs duties.
For more in-depth knowledge, you might want to explore:
- Tax Policy Council & Tax Policy Research Unit: Notes for UPSC
- Understanding Taxation in India – Direct & Indirect Taxes, Features of the Taxation System