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UPSC 2014: 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
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Not attemptedCorrect Answer: (d) tax imposed and collected by the State Government
Before GST, sales tax on goods like toothpaste was a state subject under the Constitution: each State Government both levied and collected it within its territory. It was neither imposed by the Centre nor collected by it. ([compass.rauias.com](https://compass.rauias.com/upsc-prelims/economy-pyq/?utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 2014 Indian Economy question?▼
The correct answer is option (d): tax imposed and collected by the State Government. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Taxation question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2014, GS Paper 1, as Question 27. It falls under Indian Economy > Taxation.
What is the difficulty level of this UPSC question?▼
This question is rated "easy". It tests basic recall and most well-prepared aspirants should answer it correctly.
How many UPSC Prelims questions have been asked from Taxation?▼
UPSC has asked 19 questions from Taxation (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.