SSC CGL Economy – Taxation & GST – Level 3 · Challenge

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SSC CGL Economy – Taxation & GST – Level 3 · Challenge – 8 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 about the GST Council?
I. The Centre alone can pass a proposal.
II. All the States together cannot pass a proposal without the Centre.
III. The Vice-Chairperson is chosen from among the State members.

Correct Answer: C [II and III only]

Explanation:

Centre 1/3 < 3/4 and States 2/3 < 3/4, so neither alone passes anything; Vice-Chair is chosen from the States.

2.  
In a GST Council meeting 24 States are present and voting and the Centre votes in favour. The minimum number of States that must vote in favour is:

Correct Answer: B [15]

Explanation:

5/8 of 24 = 15 → 1/3 + 2/3 × 15/24 = 3/4.

3.  
Goods pass through four stages at ₹ 5,000 → ₹ 6,500 → ₹ 8,000 → ₹ 10,000 (GST 5%, full ITC, same State). Total GST received by the governments is:

Correct Answer: A [₹ 500]

Explanation:

Last-Price Rule: 5% of the final ₹ 10,000 = ₹ 500 (₹ 1,475 is the sum of output taxes, double counting credits).

4.  
Tax revenue rises from ₹ 40 to ₹ 46 (thousand crore) while GDP rises from ₹ 200 to ₹ 216 (thousand crore). Tax buoyancy is:

Correct Answer: D [1.875]

Explanation:

Revenue growth 15% ÷ GDP growth 8% = 1.875.

5.  
Spot My Mistake“A bill of ₹ 4,200 includes GST at an illustrative 5%. GST = 5% of 4,200 = ₹ 210.” What is the correct GST?

Correct Answer: C [₹ 200]

Explanation:

Back-Out: 4,200 × 5/105 = 4,200 ÷ 21 = ₹ 200.

6.  
Match the followingMatch the Seventh Schedule entries:
P. Union List 82 Q. State List 46 R. Union List 85 S. Union List 83
1. Corporation tax 2. Duties of customs 3. Taxes on agricultural income 4. Taxes on income other than agricultural income

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

Explanation:

82 non-agricultural income; 46 (State) agricultural income; 85 corporation tax; 83 customs.

7.  
Odd pairWhich pair is NOT correctly matched?

Correct Answer: B [Tax elasticity – includes the effect of new tax rates]

Explanation:

Elasticity removes discretionary changes; buoyancy includes them.

8.  
Two-quantity comparisonTwo-quantity comparison (illustrative GST 18%):
Quantity I: CGST on an intra-State supply of ₹ 30,000
Quantity II: IGST on an inter-State supply of ₹ 15,000

Correct Answer: C [Quantity I = Quantity II]

Explanation:

QI = 9% of 30,000 = ₹ 2,700; QII = 18% of 15,000 = ₹ 2,700.

➤ 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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