2014 · Polity & GovernancePrevious Year Question
Q7.
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

Explanation

The power to impose tax on sale or purchase of goods except 'newspaper' belongs to the State (Entry 54, State List II).