Q: 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
The Correct Answer is Option 4.
Sales Tax
- The sales tax you pay while purchasing a toothpaste is the tax imposed and collected by the state government, as stated in the CST 1956 act of also known as The Central Sales Tax Act.
- It is paid to the Sale Tax Authority in the state from where the goods are moved or sold or bought. Whereas now all these taxes come under the GST, also known as Goods and Service Tax. Hence, Option 4 is correct.
In case you still have your doubts, contact us on 9811333901.
For UPSC Prelims Resources, Click here
For Daily Updates and Study Material:
Join our Telegram Channel – Edukemy for IAS
- 1. Learn through Videos – here
- 2. Be Exam Ready by Practicing Daily MCQs – here
- 3. Daily Newsletter – Get all your Current Affairs Covered – here
- 4. Mains Answer Writing Practice – here
