Governments impose taxes, which are compulsory fees, on individuals and organizations to generate income for the development of public amenities and infrastructure. The accumulated monetary resource is subsequently allocated towards various public spending initiatives.

If someone neglects their tax obligations or declines to make contributions, they will face severe consequences according to the established legal framework.
The Indirect Taxes in India have been substituted by the Goods and Services Tax (GST). Since its enactment in 2017, the Goods and Services Tax (GST) Act has been put into effect. GST serves as an all-encompassing indirect tax for the entire country, thereby establishing India as a standardized and integrated marketplace. A sole levy imposed on the provision of commodities and amenities. The most significant reform in terms of indirect taxes has been implemented in India.

Prior to the implementation of GST, various levies like service taxes, state value-added taxes (VAT), entry taxes, and luxury taxes were imposed on commodities. The GST has assimilated these taxes. Likewise, services were subject to taxation such as the service tax and entertainment tax. The sole tax in effect currently is GST. GST imposes taxation at each sale point directly.