According to Najib Shah, Chairman Central Board of Excise and Customs, the total indirect tax collection has surpassed even the revised estimate of Rs.7.04 lakh crores.
The finance minister during budget 2015-16 had kept a target of Rs.6.48 lakh crores for indirect taxes in FY2015-16.
The target was revised by the finance minister in Feb'2016 to Rs.7.04 lakh crores owing to better collections.
What are indirect taxes?
Indirect taxes are taxes collected by the government from intermediaries such as manufacturers and retailers, but the eventual burden falls on the consumers who consume goods and services.
Examples of indirect taxes in India include sales tax, VAT, excise duties, etc.
Unlike direct tax (such as income tax, wealth tax, etc.) which is levied on individuals, indirect tax is levied on goods and services.
GST: a type of indirect tax
The Goods and Service Tax (GST), which is stated to be India's biggest indirect tax reform since independence, is a type of indirect tax which will subsume all other indirect taxes to simplify complexities in indirect taxation.