| Title: TRENDS AND COMPOSITION OF TAX REVENUE IN INDIA: INSIGHTS FROM DIRECT AND INDIRECT TAXES (2013–2025) |
| Author: Shreekrishan Jha and Shekhar Kumar Mishra |
| Abstract: One of the main pillars of fiscal policy is taxation, which gives the government the money it needs to fund welfare, infrastructure, and public goods. India’s tax revenue trends from 2013–14 to 2024–25 are thoroughly examined in this study, with a focus on the relative contributions of direct and indirect taxes to overall revenue. The study assesses growth trends, tax composition, and the Tax-to-GDP ratio using secondary data from official sources like the Controller General of Accounts (CGA), the Central Board of Direct Taxes (CBDT), the Central Board of Indirect Taxes and Customs (CBIC), and Union Budget documents. The results show a steady increase in gross tax receipts, which is fueled by digitalization, better compliance, and structural changes like the Goods and Services Tax(GST) and reduction of business tax rates. Direct taxes accounted for over 57% of total revenue in FY 2023–2024, up from roughly 53% in FY 2013–14. This rise was due to consistent corporate tax growth and improved performance in personal income tax collections. Although their proportionate share has decreased since 2017, indirect taxes—led by the Goods and Services Tax (GST)—remain an essential component of fiscal revenue. According to the study’s findings, India’s fiscal system has shown resilient and adaptable, and continuous reforms are assisting in the modernization of tax management. To guarantee a sustainable, effective, and fair tax system, it suggests expanding the tax base even more, streamlining tax legislation, and bolstering GST oversight |
| Keywords: Tax Revenue, Direct Taxes, Indirect Taxes, GST, Tax-GDP Ratio, Fiscal Policy, India |
| DOI: https://doi.org/10.38193/IJRCMS.2025.7625 |
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| Date of Publication: 05-12-2025 |
| Download Publication Certificate: PDF |
| Published Vol & Issue: Volume 7 Issue 6 Nov-Dec 2025 |