GS3 › Public Finance and the Budget

Revision note: Taxation in India: Direct Taxes, GST and Tax Reforms

  • Canons: equity, certainty, convenience, economy; buoyancy (incl. discretionary changes) vs elasticity
  • Art 246A (GST, concurrent), 268–270 (sharing; cess/surcharge not shared), 279A (GST Council)
  • Corporate tax cut Sept 2019: 22%; new manufacturing 15%; retrospective tax ended 2021
  • New regime default 2023–24; 2025: no tax up to ₹12 lakh; Income-tax Act 2025 from 1 Apr 2026
  • GST 1 July 2017 (101st Amdt; Kelkar 2004): CGST/SGST/IGST; Council 3/4 weighted vote (Centre 1/3); Mohit Minerals 2022: persuasive
  • GST rationalisation from 22 Sept 2025: 5% and 18% (40% luxury/sin)
  • Tax-to-GDP ~17–18% (combined)
Revision card summarising Taxation in India: Direct Taxes, GST and Tax Reforms
One-page visual summary of the key points to revise.

Source: https://upscprep.in/upsc/gs3/public-finance-and-the-budget/taxation-in-india-direct-taxes-gst-and-tax-reforms/ · UPSCPrep.in

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