The sales tax you pay while purchasing a toothpaste is a:
✓ Correct answer: d) Tax imposed and collected by the State Government.
ExplanationEarlier sales tax was collected by the State Government, and the rate of sales tax varied from state to state.Toothpaste is a consumer good, and under the previous regime, it was subjected to Sales Tax or VAT (Value Added Tax), which was collected by the State Government.However, after the introduction of the Goods and Services Tax (GST) in 2017, sales tax was largely subsumed under GST, which is a dual taxation system involving both the Centre and the State Governments.257
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