Australia crumbled on the final day in Nagpur as India powered home to a 172-run win in the fourth Test to seal a 2-0 series victory.
Australia's top-ranked Test team suffered a first series defeat since the 2005 Ashes in England as India completely outplayed Ricky Ponting's side to claim a first win over the Aussies in seven years.
Ponting's men started the day on 13-0 chasing an unlikely 382 runs needed to win the Test and square the series, but as their final seven wickets tumbled for just 69 runs Australia were knocked over for 209 to lose convincingly.
India have dominated throughout the series and the final day of the final Test in Nagpur summed up the series as Australia's batsmen could not handle the India attack, especially Amit Mishra and Harbhajan Singh.
Australia started the day on 13-0 chasing India's imposing target of 382, but two wickets from paceman Ishant Sharma and the run-out of skipper Ponting did the damage as the tourists reached lunch on 111-3.
Opener Mathew Hayden and Mike Hussey put on 68 for the fourth wicket and that partnership started to trouble the Indians who were forced back into their shell as Australia threatened to run them close.
However, young spinner Mishra produced a beauty to get rid of Hussey for 19 and that sparked a tumbling of wickets as Australia lost their last seven for just 69 runs as India really rammed home their superiority.
Hayden's battling stand was ended by Harbhajan after he made a brave 77 from 93 balls but his dismissal effectively spelled the end for Australia.
Mishra got rid of Brad Haddin and Jason Krejza - who was stumped by a MS Dhoni after being bamboozled by a lofted delivery he tried to come down the track to.
Harbhajan had partnered Mishra in tormenting the Australian lower order on a typically turning final-day Indian wicket in Nagpur.
After Harbhajan had dismissed Brett Lee for the ninth wicket, skipper Dhoni handed over the reins to veteran Sourav Ganguly who was playing his final Test and he organised proceedings for the final wicket.
Australia were put out of their misery when Harbhajan trapped Mitchell Johnson lbw to leave Cameron White unbeaten on 26 and start the Indian celebrations.
Harbhajan finished with figures of 4-64 from his 18 overs, while Mishra took 3-27 and looks a real threat.
Both Ganguly and Anil Kumble bowed out of international cricket with a superb series victory - the first time Australia have lost a series by more than one game since 1988-89 when the West Indies dominated.