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 1

The correct option is D

tax imposed and collected by the State Government
A sales tax is a consumption tax imposed by the government on the sale of goods and services. A conventional sales tax is levied at the point of sale, collected by the retailer, and passed on to the government. In India it was the tax imposed and collected by the State Government.