The option stating "It is basically subject of the Central Government and the State Governments are only a facilitator for its successful implementation" is correct because, in a value-added tax (VAT) system, both the Central and State Governments have the authority to levy VAT on goods and services. This dual structure allows for a more decentralized approach to taxation, where state governments not only facilitate but actively participate in tax administration, highlighting the federal nature of India's tax system. Understanding this division is crucial for grasping how VAT influences economic policy and revenue distribution at multiple governance levels, which is often examined in UPSC General Studies.