Q. Consider the following statements:

1. While VAT is imposed by state governments, Sales Tax is imposed by Central Government
2. While sale of goods within a state comes under state list, inter-state sale of goods is a union list subject

Which of the above statements is/are correct?
Answer: Only 2
Notes: Under Entry 54 of State List, tax on sale or purchase of goods within a State is a State subject, including VAT. Entry 92A of Union List empowers the Centre to tax inter-State sale of goods. Sales Tax (now largely subsumed under VAT/GST) is also imposed by States, not the Centre. Therefore, only statement 2 is correct.