Entertainment tax, tax on agricultural income, business tax, toll tax, sales tax, state excise, advertisement tax, etc. were levied by the state government. Almost all taxes, excluding state excise, have been replaced by the Goods and Services Tax (GST) with effect from July 1, 2017.

A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases. "Regressive" describes a distribution effect on income or expenditure, referring to the way the rate progresses from high to low, so that the average tax rate exceeds the marginal tax rate.

In this, the tax burden decreases progressively with respect to increasing income of tax payers. Therefore, it has a higher tax burden on the poor than the rich.

Direct tax is a tax where tax incidence and Impact of tax are on the same person and the tax cannot be transferred to any other person or entity. Income tax, corporation tax and property tax are the prime examples.

States do not get any share in surcharge levied on income tax. Surcharge is basically the additional tax levied on the basic tax.

Corporate tax is a type of direct tax, which is levied on the net income of companies. It is charged and collected by the Central Government. At present, it is the biggest source of income of the Central Government.

Tax Buoyancy refers to the percentage increase in tax revenue and the percentage increase in tax area. It is related to increase in tax amount due to growth of economy rather than change in tax rates.

Tax buoyancy is an indicator to measure efficiency and responsiveness of revenue mobilization in response to growth in the Gross domestic product or National income. A tax is said to be buoyant if the tax revenues increase more than proportionately in response to a rise in national income or output.

The Government appointed a Tax Reforms Committee under Prof Raja Chelliah to lay out agenda for reforming Indias tax system.This TRC came up with three reports in 1991, 1992 and 1993 with several measures.

The Parthasarathy Shome panel was formed by PM of India in 2012, for drawing up the final guidelines on GAAR and mainly to bring about tax clarity and address the concerns of foreign investors. Instead of only FIIs, the panel was asked also to look into issues pertaining to all non-resident tax payers.

Professional tax is levied and collected by the state government. In the year 2017-18, the central government has received maximum income from corporation tax, income tax, central excise respectively.

Excise Duty is a form of indirect tax that is levied on goods that have been manufactured in the country. It is levied by the government. It ideally has to be paid by the manufacturer of goods at the time of introduction of goods in to the market. Thus, it is commonly referred to as manufacturing tax.