What does Article 268 of the Indian Constitution primarily deals with?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Stamp duties levied by Union but collected by States.
Article 268 of the Indian Constitution specifies certain duties that are levied by the Central Government but are collected and kept by the State Governments. These primarily include stamp duties and formerly included excise duties on medicinal and toilet preparations (now mostly merged under GST). Since these taxes are collected within the State’s territory, the proceeds do not form part of the Consolidated Fund of India; instead, they belong entirely to the State that collected them.