UPSC CSE Prelims

Correct Option: D Explanation: At the time of this 2014 question, ordinary sales tax/VAT on toothpaste was imposed and collected by State governments. Option-wise Analysis: A: Incorrect - Central Government did not impose the ordinary State sales tax on this local retail sale. B: Incorrect - This is not a Central tax collected on behalf of the Centre by States. C: Incorrect - State retail sales tax was not ordinarily collected by the Union Government. D: Correct - Correct for the pre-GST period: imposed and collected by the State. Review Note: This is a 2014 pre-GST question. GST largely replaced State VAT/sales tax on such goods from 1 July 2017.