{"id":91166,"date":"2025-06-01T10:48:16","date_gmt":"2025-06-01T10:48:16","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=91166"},"modified":"2025-06-01T10:48:16","modified_gmt":"2025-06-01T10:48:16","slug":"the-sales-tax-you-pay-while-purchasing-a-toothpaste-is-a-2","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-sales-tax-you-pay-while-purchasing-a-toothpaste-is-a-2\/","title":{"rendered":"The sales tax you pay while purchasing a toothpaste is a"},"content":{"rendered":"

The sales tax you pay while purchasing a toothpaste is a<\/p>\n

[amp_mcq option1=”tax imposed by the Central Government” option2=”tax imposed by the Central Government but collected by the State Government” option3=”tax imposed by the State Government but collected by the Central Government” option4=”tax imposed and collected by the State Government” correct=”option4″]<\/p>\n

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\n
This question was previously asked in<\/div>\n
UPSC IAS – 2014<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nThe correct option is D. The sales tax you pay while purchasing a toothpaste is a tax imposed and collected by the State Government (in the pre-GST era or as a conceptual understanding).
\n<\/section>\n
\nPrior 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.
\n<\/section>\n
\nWith the advent of GST (implemented from July 1, 2017), most indirect taxes, including Sales Tax\/VAT, Central Sales Tax, Service Tax, etc., were subsumed into a single tax. Under GST, tax on an intra-state sale is bifurcated into Central GST (CGST) and State GST (SGST), both levied simultaneously. However, the question refers to “sales tax,” implying the pre-GST regime or a general understanding of the tax on sales, which was a state domain.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

The sales tax you pay while purchasing a toothpaste is a [amp_mcq option1=”tax imposed by the Central Government” option2=”tax imposed by the Central Government but collected by the State Government” option3=”tax imposed by the State Government but collected by the Central Government” option4=”tax imposed and collected by the State Government” correct=”option4″] This question was previously … <\/p>\n

Detailed SolutionThe sales tax you pay while purchasing a toothpaste is a<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1468,1120,1196],"class_list":["post-91166","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1468","tag-economic-development","tag-fiscal-policy-revenue","no-featured-image-padding"],"yoast_head":"\nThe sales tax you pay while purchasing a toothpaste is a<\/title>\n<meta name=\"description\" content=\"The correct option is D. The sales tax you pay while purchasing a toothpaste is a tax imposed and collected by the State Government (in the pre-GST era or as a conceptual understanding). 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. 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