The sales tax you pay while purchasing a 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

Explanation

Option (d) is correct

• Sales tax, before the implementation of the Goods and Services Tax (GST), was a tax on the sale of goods imposed and collected by the respective State Governments. Each state had its own sales tax laws and rates.

Answer: (d) tax imposed and collected by the State Government; Difficulty Level: Easy