The correct answer is: C) State Goods and Services Tax (SGST).
State Goods and Services Tax (SGST) is a tax levied on the supply of goods and services within a state in India. It is levied by the state government and collected by the state government. The proceeds of SGST are shared between the state government and the central government in the ratio of 50:50.
Income tax is a tax levied on the income of individuals and companies. It is levied by the central government and collected by the central government. The proceeds of income tax are used to finance the central government’s expenditure.
Property tax is a tax levied on the value of property. It is levied by the local government and collected by the local government. The proceeds of property tax are used to finance the local government’s expenditure.
Excise duty is a tax levied on the manufacture, sale, or consumption of goods. It is levied by the central government and collected by the central government. The proceeds of excise duty are used to finance the central government’s expenditure.
In Telangana, the primary source of state revenue is SGST. In the financial year 2020-21, SGST accounted for 56% of the state’s total revenue. The other major sources of state revenue in Telangana are income tax (20%), property tax (10%), and excise duty (10%).