Question
The sales tax you pay while purchasing a toothpaste is a
(a) tax imposed by the Central Government
(b) tax imposed by the Central Government but collected by the State Government
(c) tax imposed by the State Government but collected by the Central Government
(d) tax imposed and collected by the State Government
Answer:
D
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Explanation:
The sales tax you pay while purchasing a toothpaste is a tax imposed and collected by the State Government.
Note: The sales tax on toothpaste is now replaced by the Goods and Services Tax (GST) in India. The GST is a comprehensive indirect tax levied by the Central and State Governments together. It is a destination-based tax that is collected by the respective State Government where the sale occurs.