Answer to Question #219579 in Economics for akky

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 central Government.

[Answer if you 100% sure with explanation]

Answer 1

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

So, the correct answer is "Tax imposed and collected by the State Government".