Previous Year Question
Which one of the following is not a tax/duty levied by the Government of India?
Service Tax
Education
Custom Duty
Toll Tax
Correct Answer: D
Detailed Solution
Under the tax structure prevailing in 2013, Service Tax was an indirect tax levied by the Union Government. Its statutory basis was the Finance Act, 1994. Later, with the introduction of GST from 1 July 2017, Service Tax was subsumed into GST.
Education Cess was also a cess imposed by the Union for financing education-related requirements. Similarly, Customs Duty is a Union levy relating to imports and exports, principally governed by the Customs Act, 1962 and the Customs Tariff Act, 1975.
However, the present position must be understood separately. It would not be correct today to make a blanket statement that the Central Government does not levy any toll/user fee. User fees on National Highways are determined and collected under National Highways Fee Rules framed by the Central Government, and such a framework has operated under the 2008 Rules and subsequent amendments.