Direct and Indirect Taxes — Mains Questions

Analyze the constitutional framework governing the distribution of taxation powers between the Centre and States in India. How has the implementation of GST affected this traditional distribution?

Examine the economic principles underlying the classification of taxes into direct and indirect categories. Discuss their relative merits and demerits in the context of India's developmental needs.

Critically evaluate the statement: 'India's transition from an indirect tax-dominant to a direct tax-dominant economy reflects its economic development and formalization.' Support your arguments with relevant examples.