Multiple choice

The largest source of revenue for a state government is

  1. sales tax

  2. excise tax

  3. entertainment tax

  4. motor vehicle tax

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Historically, Sales Tax (now largely integrated into GST) has been the single largest source of own-tax revenue for state governments in India. It contributes a major portion of the funds used for state-level public services and infrastructure.