Consider the following statements with respect to taxation in India:

  1. Sales Tax / VAT on commodities sold within a state is in the exclusive jurisdiction of the State Government
  2. Customs duties are levied and collected by the Union but distributed between Union and States

Which of the above is / are correct statements?

Answer: [C] Both 1 & 2

Both statements are correct in this question. Regarding second statement, we note that the divisible pool now includes corporate taxes and customs duties.

This question is a part of GKToday's Integrated IAS General Studies Module