Introduction: The tax levied on the interstate trade of goods is the Central Sales Tax (CST). It is a tax imposed by the central government of India on the sale of goods that occur in the course of interstate trade or commerce. The tax is collected by the state government but is regulated and administered by the central government.

Explanation: The Central Sales Tax is applicable when goods are sold from one state to another. It is imposed on the sale of goods during interstate trade and commerce. Let's understand the concept in more detail:

1. Sales Tax: Sales tax is a tax levied by the state government on the sale or purchase of goods within the state. It is not specific to interstate trade and commerce, so it is not the correct answer.

2. Excise Tax: Excise tax is a tax levied on the production, sale, or use of certain goods within the country. It is not related to interstate trade, so it is not the correct answer.

3. Service Tax: Service tax is a tax levied on the provision of certain services. It is not applicable to the sale of goods during interstate trade, so it is not the correct answer.

4. Central Sales Tax: Central Sales Tax (CST) is a tax levied by the central government on the sale of goods during interstate trade or commerce. It is imposed on the movement of goods from one state to another. The tax rate may vary from state to state, and the revenue is collected by the state government but regulated and administered by the central government. Therefore, the correct answer is option 'D', Central Sales Tax.

Conclusion: The tax levied on the interstate trade of goods is the Central Sales Tax (CST). It is imposed by the central government and collected by the state government. It is specifically applicable to the sale of goods during interstate trade or commerce.