Multiple choice

The sales tax you pay while purchasing toothpaste is a

  1. tax imposed by the Central Government

  2. tax imposed by the Central Government but collected by the State Government

  3. tax imposed by the State Government but collected by the Central Government

  4. tax imposed and collected by the State Government
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Taxes on toothpaste come under CST Act, which is administered by State Government. Sales Tax is paid to the Sales state from where the goods are moved, i.e. the state from where the movement of goods begins.

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