If you want Netlify to build your website, you’d have to push your Hugo website’s source code and not the published website. The source code would be the folder in which you have your
config.toml file locally. Once you publish that folder to a Git repo, you can connect it to Netlify and then, with build settings as:
you can get your website deployed, provided the source code of the website is not inside any sub-directory of your repo.