SSC CGL Economy – Taxation & GST – Level 1 · Warm-up · Tier I Level

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SSC CGL Economy – Taxation & GST – Level 1 · Warm-up · Tier I Level – 15 questions, subject: Indian Economy. Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.

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1.  
Which of the following is an indirect tax?

Correct Answer: D [Goods and Services Tax]

Explanation:

GST is collected from the seller and passed on to the buyer in the price – impact and incidence differ.

2.  
One-line factGST came into force in India on:

Correct Answer: A [1 July 2017]

Explanation:

GST was launched on 1 July 2017, observed as GST Day.

3.  
GST was introduced by which Constitutional Amendment Act?

Correct Answer: B [101st Amendment Act, 2016]

Explanation:

The 122nd Amendment Bill became the Constitution (101st Amendment) Act, 2016.

4.  
The GST Council is provided for in which Article of the Constitution?

Correct Answer: C [Article 279A]

Explanation:

279A = GST Council; 269A = IGST; 246A = power to make GST laws; 280 = Finance Commission.

5.  
Who is the Chairperson of the GST Council?

Correct Answer: A [Union Finance Minister]

Explanation:

Art. 279A: the Union Finance Minister chairs the Council.

6.  
A supply of goods from a dealer in Keralam to a buyer in Gujarat attracts:

Correct Answer: B [IGST]

Explanation:

Inter-State supply → Integrated GST (Art.

7.  
Fill in the blankArticle ___ gives both Parliament and the State Legislatures the power to make laws on GST.

Correct Answer: C [246A]

Explanation:

Art. 246A – concurrent power to levy GST (265 = tax only by law; 279A = GST Council; 269A = IGST).

8.  
A tax whose impact and incidence fall on the same person is called a(n):

Correct Answer: D [Direct tax]

Explanation:

Direct tax: the payer bears it and cannot shift it.

9.  
A tax charged as a percentage of the value of a good is called:

Correct Answer: C [Ad valorem tax]

Explanation:

Ad valorem = 'according to value' – a % of value.

10.  
CBIC stands for:

Correct Answer: A [Central Board of Indirect Taxes and Customs]

Explanation:

CBIC (earlier CBEC) administers GST, customs and central excise.

11.  
Which income can be taxed only by the States?

Correct Answer: D [Agricultural income]

Explanation:

State List Entry 46 – taxes on agricultural income.

12.  
How many characters does a GSTIN have?

Correct Answer: B [15]

Explanation:

2 (State code) + 10 (PAN) + 1 + 1 + 1 = 15.

13.  
Which of the following was NOT subsumed in GST?

Correct Answer: A [Basic customs duty]

Explanation:

Only additional customs duties (CVD, SAD) were subsumed; basic customs duty continues.

14.  
The Laffer curve shows the relation between:

Correct Answer: C [Tax rate and tax revenue]

Explanation:

Laffer curve: revenue first rises and then falls as the tax rate rises (Phillips curve = inflation–unemployment).

15.  
One-line factThe Income-tax Act, 2025 came into force on:

Correct Answer: B [1 April 2026]

Explanation:

PIB, 1 April 2026: the new Act replaced the Income-tax Act, 1961 from that day (as on 15 October 2026).

➤ Full notes, shortcuts and every answer explained – SSC CGL 2026 Indian Economy book (₹149): www.shanmugamiasacademy.in/study-materials/ssc-cgl-indian-economy

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