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The sales tax you pay while purchasing a toothpaste is a

,

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)

Core Books/NCERT

Explanation

Option a is incorrect: Sales tax is not imposed by the Central Government. Option b is incorrect: Central Government imposes excise duty, service tax (pre-GST era), but sales tax was not under Centre’s purview. Option c is incorrect: There was no provision where States imposed sales tax but Centre collected it. Option d is correct: Sales tax was a State subject (Entry 54, State List, 7th Schedule). States both imposed and collected sales tax on intra-state sales of goods like toothpaste.