UPSC Indian Economy – Chapter 15: Taxation and the Goods and Services Tax (29 MCQs)

The GST was launched in India on:

Under the GST rates effective from 22 September 2025, the "standard rate" is:

Which one of the following is outside the GST by the Constitution itself?

Consider the following statements about the GST Council:
1. It is chaired by the Union Finance Minister.
2. Its recommendations are binding on Parliament and State Legislatures.
Which of the statements given above is/are correct?

In the GST Council, the vote of the Central Government carries a weight of:

A tax whose rate rises as income rises is called:

The responsiveness of tax revenue to GDP, including the effect of changes in tax rates, is called:

The Income-tax Act, 2025 came into force on:

Under the new tax regime, the rebate makes total income tax-free up to:

Assertion (A): GST removes the cascading of taxes.
Reason (R): GST allows credit for tax paid on inputs at every stage of supply.

In a two-stage supply with GST at 18 per cent, a manufacturer sells for Rs 100 and a retailer sells for Rs 150. The GST paid by the retailer to the Government is:

Arrange the following in chronological order:
1. MODVAT
2. State VAT
3. GST launched
4. Income-tax Act, 2025 in force
Select the correct answer:

The 6 per cent equalisation levy was imposed on:

In which case did the Supreme Court hold that the recommendations of the GST Council are not binding?

Consider the following statements:
1. The Directorate of Revenue Intelligence enforces the Customs Act, 1962.
2. GAAR has been in force since 1 April 2017.
3. The Directorate of Enforcement works under the Ministry of Home Affairs.
Which of the statements given above are correct?

The committee that recommended a revenue-neutral rate for GST was headed by:

Under GST 2.0, which one of the following attracts the special 40 per cent rate?

Under OECD/G20 rules, the global minimum effective tax rate on large multinational groups is:

Integrated GST (IGST) is levied on:

Consider the following statements:
Statement I: In India, income from allied agricultural activities like poultry farming and wool rearing in rural areas is exempted from any tax.
Statement II: In India, rural agricultural land is not considered a capital asset under the provisions of the Income-tax Act, 1961.
Which one of the following is correct in respect of the above statements?

With reference to the Government of India, consider the following information:
I. Directorate of Enforcement – Enforcement of the Fugitive Economic Offenders Act, 2018 – works under the Internal Security Division-I, Ministry of Home Affairs
II. Directorate of Revenue Intelligence – Enforces the provisions of the Customs Act, 1962 – works under the Department of Revenue, Ministry of Finance
III. Directorate General of Systems and Data Management – Carrying out big data analytics to assist tax officers for better policy and nabbing tax evaders – works under the Department of Revenue, Ministry of Finance
In how many of the above rows is the information correctly matched?

Which one of the following situations best reflects "Indirect Transfers" often talked about in the media recently with reference to India?

Which one of the following effects of creation of black money in India has been the main cause of worry to the Government of India?

With reference to India's decision to levy an equalization tax of 6% on online advertisement services offered by non-resident entities, which of the following statements is/are correct?
1. It is introduced as a part of the Income Tax Act.
2. Non-resident entities that offer advertisement services in India can claim a tax credit in their home country under the "Double Taxation Avoidance Agreements".
Select the correct answer using the code given below:

Consider the following items:
1. Cereal grains hulled
2. Chicken eggs cooked
3. Fish processed and canned
4. Newspapers containing advertising material
Which of the above items is/are exempted under GST (Good and Services Tax)?

What is/are the most likely advantages of implementing 'Goods and Services Tax (GST)'?
1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.
2. It will drastically reduce the 'Current Account Deficit' of India and will enable it to increase its foreign exchange reserves.
3. It will enormously increase the growth and size of the economy of India and will enable it to overtake China in the near future.
Select the correct answer using the code given below:

With reference to the 'Prohibition of Benami Property Transactions Act, 1988 (PBPT Act)', consider the following statements:
1. A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction.
2. Properties held benami are liable for confiscation by the Government.
3. The Act provides for three authorities for investigations but does not provide for any appellate mechanism.
Which of the statements given above is/are correct?

The sales tax you pay while purchasing a toothpaste is: