This paper makes an attempt to assess the trends of direct and indirect tax collection and their impact on the GDP of India for a period of 10 years (i.e., from 2012-13 to 2021-22). An attempt has been made to observe the trend values of direct and indirect tax collection in India and to study the correlation between total revenue (direct and indirect tax) and GDP. The study is based on secondary data collected from published data by the RBI, NSO, and magazines. The available data have been analysed by using some important managerial and statistical tools, viz., tax-to-GDP ratio regression, correlation, and ANOVA, in order to test the significance of the results obtained. On the basis of an overall analysis, it is therefore important to state that there is a significant relationship between direct and indirect taxes and the country’s GDP. It is also clear that a major portion of the tax revenue comes from indirect taxes.

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Keywords: Direct Tax, Indirect Tax, GDP, Regression Analysis, Correlation, ANOVA.