The correct answer is Estate duty. Explanation & Key Takeaways: The citizens of India cannot shy away from paying taxes. The Government of India imposes two types of taxes on its citizens – direct and indirect taxes. • Direct tax is charged on income, salary or profits of an individual or corporates. In the case of direct tax, the burden can’t be shifted by the taxpayer to someone else. These are largely taxes on income or wealth. Income-tax, corporation tax, estate duty, property tax, inheritance tax and gift tax are examples of direct tax. • Indirect tax is a levy where the incidence and impact of taxation do not fall on the same entity. The burden of tax can be shifted by the taxpayer to someone else. Indirect tax has the effect to raising prices of products on which they are imposed. Customs duty, import duty, central excise, service tax and value-added tax are examples of indirect tax. Excise duties on fuel, liquor, and cigarette taxes are all considered examples of indirect taxes. NOTE- Sales taxes can be direct or indirect. If they are imposed only on the final supply to a consumer, they are direct. If they are imposed as value-added taxes along the production process, then they are indirect. What is GST? GST, or goods and services tax, is an indirect tax. The Goods and Services Tax Act was passed by Parliament on March 29, 2017. It is levied on the supply of goods and services. This law has replaced many indirect taxes that previously existed in India.