The sales tax you pay while purchasing a toothpaste is a
tax imposed by the Central Government
tax imposed by the Central Government but collected by the State Government
tax imposed by the State Government but collected by the Central Government
tax imposed and collected by the State Government
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC IAS – 2014
Prior to the implementation of the Goods and Services Tax (GST) in India, Sales Tax (or Value Added Tax – VAT) on the sale of goods within a state was a state subject. This meant that the power to levy and collect sales tax on intra-state sales rested with the State Government, as per the State List (List II) of the Seventh Schedule of the Constitution of India.