SSC CGL Economy – Taxation & GST – Tier II Level · Marathon

← Back

SSC CGL Economy – Taxation & GST – Tier II Level · Marathon – 10 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.

Get daily current affairs & exam alerts – follow us YouTube WhatsApp Channel Telegram Channel Facebook Page Instagram
Share with friends & study groups
Link to this page from your website / blog (HTML code)
1.  
31 States are present and voting in a GST Council meeting and the Centre votes yes. The least number of State 'yes' votes needed is:

Correct Answer: C [20]

Explanation:

5 × 31/8 = 19.375 → round up to 20.

2.  
24 States are present and voting and the Centre votes yes. At most how many States can vote 'no' and the proposal still pass?

Correct Answer: A [9]

Explanation:

Need 5/8 × 24 = 15 yes votes → up to 9 can say no.

3.  
Assertion–Reason
A: No proposal can pass in the GST Council if the Centre votes against it.
R: All States together carry two-thirds of the weighted votes, which is less than three-fourths.

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

Explanation:

2/3 < 3/4, so without the Centre's 1/3 the threshold cannot be reached.

4.  
Old cascading system, illustrative tax 10%, no credit: a maker sells at ₹ 10,000 + tax; a trader adds ₹ 5,000 to its cost and charges 10% on the total. Under GST with full credit the consumer pays 10% on ₹ 15,000. How much more does the consumer pay under the old system?

Correct Answer: A [₹ 1,100]

Explanation:

Old: (11,000 + 5,000) × 1.1 = 17,600; GST: 16,500; extra ₹ 1,100 (tax on tax).

5.  
A price of ₹ 6,300 includes GST at 5%. The price before GST is:

Correct Answer: B [₹ 6,000]

Explanation:

6,300 × 100/105 = ₹ 6,000 (5% of 6,300 = 315 → 5,985 is the trap).

6.  
A retailer bought goods for ₹ 30,000 and paid net GST of ₹ 1,080 on the sale (GST 18%, full ITC). The sale price (without tax) was:

Correct Answer: D [₹ 36,000]

Explanation:

Value added = 1,080/0.18 = 6,000 → sale = 30,000 + 6,000.

7.  
Reverse questionIn a chain with one illustrative GST rate of 18% and full ITC, governments receive ₹ 3,600 in total. The final price to the consumer (before tax) is:

Correct Answer: C [₹ 20,000]

Explanation:

Last-Price Rule reversed: 3,600 ÷ 0.18 = ₹ 20,000.

8.  
Tax revenue grows by 12% and tax buoyancy is 1.5. GDP growth is:

Correct Answer: D [8%]

Explanation:

Buoyancy = 12/g = 1.5 → g = 8%.

9.  
Statement-basedWhich is/are correct about using input tax credit?
I. IGST credit can be used to pay CGST.
II. CGST credit can be used to pay SGST.

Correct Answer: A [Only I]

Explanation:

IGST credit can pay IGST, CGST and SGST; CGST and SGST credits cannot be crossed.

10.  
Imaginary progressive slabs: nil up to ₹ 3 lakh, 10% on the next ₹ 3 lakh, 20% above ₹ 6 lakh. For an income of ₹ 8 lakh, the effective tax rate is:

Correct Answer: B [8.75%]

Explanation:

Tax = 30,000 + 40,000 = 70,000; 70,000/8,00,000 = 8.75% – far below the top 20%.

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

📘 SSC CGL 2026 – Indian Economy (Tier I + Tier II)
Here you get the answer with a one-line explanation. 773 original questions with answer key and explanations · mind-maps, notes, tables and shortcuts · Tier I and Tier II practice sets + 3 mock tests
Get the book – ₹149 ₹299 →
Score: 0 Answered: 0 / 0