Since ancient times, taxes have been a powerful notion in India. Manu, the source of ancient law, outlined that artisans and traders should pay one-fifth of their rewards in gold and silver. Depending on their requirements, the farmers had to pay one-sixth, one-eighth, or one-tenth of the offers. Taxation is another idea that appears in Shrimad Bhagvat. Taxes are also mentioned by Chanakya in his Artha Shashtra. Tax is referred to as Kosh Moolo Dand by Chanakya. The tax system in ancient India served a purpose, and the mix of direct and indirect taxes helped the system remain flexible. Approximately 65% of the money that the Indian states receive comes from their own resources, with the remaining 35% coming from federal transfers. Traditional economists believed that taxes should only be used to increase the government's revenue. The "VITAL ROLE OF TAXATION IN THE ECONOMIC DEVELOPMENT OF INDIA" is examined in this paper. Up to now, only broad analyses and conclusions have been offered. Additionally, there are suggestions for future tax-related actions.

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Keywords: Tax, GST, Indian Economy, GSTN, India.