INDIRECT TAXATION IN INDIA: EVOLUTION, STRUCTURE, CHALLENGES, AND FUTURE PROSPECTS

This article aims to provide valuable insights into India’s indirect tax landscape andproposestrategic reforms for its future development. Indirect taxation plays a crucial role inIndia’sfiscal policy, contributing significantly to government revenue and influencing economicactivities. Over the years, India's indirect tax system has undergone substantial transformations, evolving from a complex multi-tax regime to a more streamlined structurewith the introduction of the Goods and Services Tax (GST) in 2017. This article examines thehistorical evolution, structural framework, challenges, and future prospects of indirect taxation in India. The pre-GST era was marked by multiple layers of taxation, includingexcise duty, service tax, VAT, and customs duties, which often resulted in a cascadingtaxeffect and inefficiencies. The introduction of GST aimed to simplify tax compliance, eliminate cascading effects, and promote a unified national market. However, despiteitsadvantages, the implementation of GST has faced challenges such as high compliance costs, complex rate structures, technical issues, and frequent policy changes.