SSC CGL Economy – Taxation & GST – Level 2 · Exam Level · Tier I Sprint

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SSC CGL Economy – Taxation & GST – Level 2 · Exam Level · Tier I Sprint – 16 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.  
Statement-basedWhich of the following is/are correct?
I. GST is a destination-based tax.
II. IGST is levied and collected by the State Governments.

Correct Answer: D [Only I]

Explanation:

IGST is levied and collected by the Union (Art.

2.  
Match the followingMatch the Articles with their subjects:
P. 246A Q. 269A R. 279A S. 265
1. GST Council 2. No tax without law 3. Power to make GST laws 4. IGST on inter-State supply

Correct Answer: B [P-3, Q-4, R-1, S-2]

Explanation:

Power, Pass, Panel: 246A power, 269A inter-State, 279A Council; 265 no tax without law.

3.  
Assertion–Reason
A: GST removes the cascading effect of taxes.
R: Input tax credit allows a business to deduct GST paid on its purchases from GST due on its sales.

Correct Answer: D [Both A and R are true and R explains A]

Explanation:

Because of ITC, only the value added is taxed at each stage – no tax on tax.

4.  
Odd one out

Correct Answer: A [Securities transaction tax]

Explanation:

STT is a direct tax (CBDT); customs, central excise and GST are indirect taxes (CBIC).

5.  
A trader sells goods worth ₹ 50,000 within the same State at an illustrative GST rate of 18%. What is the SGST?

Correct Answer: C [₹ 4,500]

Explanation:

Half-Half: 9% of 50,000 = ₹ 4,500 (CGST is also ₹ 4,500).

6.  
A price of ₹ 2,360 includes GST at an illustrative 18%. The GST amount is:

Correct Answer: A [₹ 360]

Explanation:

2,360 × 18/118 = ₹ 360 (not 18% of 2,360 = ₹ 424.80).

7.  
In the GST Council the vote of the Central Government has a weightage of:

Correct Answer: C [One-third of the total votes cast]

Explanation:

Art. 279A: Centre 1/3; all States together 2/3.

8.  
A decision of the GST Council needs a majority of at least:

Correct Answer: B [Three-fourths of the weighted votes of members present and voting]

Explanation:

Art. 279A: not less than three-fourths of the weighted votes of members present and voting.

9.  
The quorum for a meeting of the GST Council is:

Correct Answer: D [One-half of the total members]

Explanation:

Art. 279A: quorum is one-half of the total number of members.

10.  
By its constitutional definition (Art. 366(12A)), GST does NOT cover the supply of:

Correct Answer: B [Alcoholic liquor for human consumption]

Explanation:

Only alcoholic liquor for human consumption is excluded by the definition; petroleum items await a Council date.

11.  
True/False drillhow many statements are true?
(i) CBDT administers income tax.
(ii) Wealth tax is a current direct tax in India.
(iii) Cesses form part of the divisible pool shared with States.
(iv) HSN codes were developed by the World Customs Organization.

Correct Answer: C [Two]

Explanation:

(i) and (iv) true; wealth tax abolished from AY 2016–17; cesses are kept out of the divisible pool (Art.

12.  
Tax buoyancy is measured as:

Correct Answer: A [% change in tax revenue ÷ % change in GDP]

Explanation:

Buoyancy compares growth of revenue with growth of GDP (tax-to-GDP is a level, not a response).

13.  
A tax is called regressive when:

Correct Answer: D [Its burden as a share of income falls as income rises]

Explanation:

Regressive: poorer people pay a larger share of their income.

14.  
Data-basedA manufacturer sells goods to a wholesaler for ₹ 8,000, the wholesaler to a retailer for ₹ 10,000 and the retailer to a customer for ₹ 13,000 (same State, GST 5%, full ITC). The net GST paid by the retailer is:

Correct Answer: A [₹ 150]

Explanation:

5% of value added (13,000 − 10,000) = ₹ 150.

15.  
Chronological orderArrange in chronological order:
1. GST comes into force
2. 122nd Amendment Bill introduced in the Lok Sabha
3. E-way bill for inter-State movement begins
4. Union Budget speech proposes a national GST

Correct Answer: B [4, 2, 1, 3]

Explanation:

2006 Budget → 2014 Bill → 1 July 2017 GST → 1 April 2018 e-way bill.

16.  
Reverse question'Integrated GST on supplies in the course of inter-State trade' is the subject of which Article?

Correct Answer: D [Article 269A]

Explanation:

269A – IGST levied and collected by the Union and apportioned.

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