UPSC Prelims 2014— Question 47

Correct answer: Option D. Sales tax was a state-level indirect tax under the pre-GST constitutional and fiscal framework relevant to 2014. It was imposed and collected by the State Government on transactions within the state's tax jurisdiction, subject to the applicable sales-tax/VAT laws. It was therefore not a central tax. Option A: Incorrect. This option does not match the verified answer because its proposition, location, institution, sequence, or combination conflicts with the relevant fact tested in the question. The option reads: “tax imposed by the Central Government” Option B: Incorrect. This option does not match the verified answer because its proposition, location, institution, sequence, or combination conflicts with the relevant fact tested in the question. The option reads: “tax imposed by the Central Government but collected by the State Government” Option C: Incorrect. This option does not match the verified answer because its proposition, location, institution, sequence, or combination conflicts with the relevant fact tested in the question. The option reads: “tax imposed by the State Government but collected by the Central Government” Option D: Correct. This option is consistent with the governing fact or the valid combination identified in the question. The option reads: “tax imposed and collected by the State Government” The key Prelims lesson is to test each proposition independently before selecting the combination. Where the question uses words such as 'only', 'all', 'none', 'always' or a precise institutional/geographical association, a single inaccurate component is sufficient to eliminate the option. The answer recorded here follows the official answer key for the question-paper series represented by the uploaded source and has been cross-checked against an independent published key. The explanation is intended for conceptual revision rather than as a reproduction of any third-party solution.