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. 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.
The sales tax you pay while purchasing a toothpaste is a
Asked in UPSC IAS 2014 · Topic: Fiscal Policy & Revenue (Taxation System in India: Direct, Indirect taxes, and Tax Reforms (including GST))
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Answer: D. tax imposed and collected by the State Gov‐ ernment
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