WBCS Preliminary Examination 2024 — General Studies · Question 99 of 200

Answer: (A) Customs Duties

Customs duty is the tax on goods entering or leaving the country (import and export duties), levied by the Union under the Customs Act, 1962 and administered by the CBIC. Excise duty (B) is a tax on the manufacture of goods within the country; after GST it survives mainly on petroleum products and tobacco (Central) and on liquor for human consumption (State excise). VAT (C) was the state-level tax on sale of goods, now largely limited to petroleum and liquor. GST (D), introduced on 1 July 2017 by the 101st Constitutional Amendment, is a destination-based tax on the supply of goods and services. Basic customs duty was not subsumed in GST, although IGST is charged on imports in addition to it.