Indian Economy PYQ – Goods and Services Tax
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The Finance Act 2016 added Section 80-IAC to the Income Tax Act, giving eligible startups a tax holiday for three consecutive years after Startup India.
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Indian Economy PYQ – Goods and Services Tax – 13 questions, subject: 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.
VAS AHGS 2020
Match List I (Goods) with List II (GST rate) :(a) Household necessities – 1. 5%
(b) Computers and processed food – 2. 28%
(c) Capital goods and industrial intermediaries – 3. 12%
(d) Luxury items – 4. 18%
Correct Answer: D [1 3 4 2]
Explanation:
Under GST, household necessities are taxed at 5%, computers and processed food at 12%, capital goods and industrial intermediates at 18% and luxury goods at 28%, giving 1 3 4 2.
2.
VAS AHGS 2020 · Group 1 2024
Consider the following statements about GST arrangements in India :I. Both Centre and State taxes will be collected at the point of sale.
II. The Centre and State GST will be charged on the manufacturing cost.
Which of the statements is/are true?
Correct Answer: B [Only I is true]
Explanation:
GST is a destination-based tax with both Central and State GST collected at the point of sale, and it is levied on transaction value, not on production.
3.
VAS AHGS 2020
Which of the following denote the meaning of Goods and Services Tax?1. It is a consolidated indirect tax
2. It is a single unified tax
3. It is imposed only by Central Government
4. It is payable at final point of consumption
Correct Answer: D [(1), (2) and (4) only]
Explanation:
GST is a consolidated, single unified indirect tax borne by the consumer; it is levied by both Centre and states under Article 246A, so it is not a Centre-only levy.
4.
PTGS 2021
Match the following :(a) VAT – 1. Multipoint tax with cascading effect
(b) GST – 2. One point tax without cascading effect
(c) Sales Tax – 3. Multipoint tax without cascading effect
(d) CGST – 4. Collected by the Central Government for inter-State sale
(e) IGST – 5. Collected by the Central Government on an intra-State sale
Correct Answer: B [3 2 1 5 4]
Explanation:
VAT taxes only value added at each stage with input credit, avoiding cascading (3), while the old sales tax cascaded (1); the remaining matches follow for GST components, giving 3 2 1 5 4.
5.
EO Gr. III (HR&CE) 2022
Which of the following is/are the advantage/s of goods and service tax?(i) Removing cascading tax effect
(ii) Uniform taxation of goods and services
(iii) Tax decisions are taken jointly by Centre and State
Correct Answer: D [(i), (ii) and (iii)]
Explanation:
GST removes the cascading effect through input tax credit, provides uniform taxation across the country, and is administered through the GST Council.
6.
EO Gr. IV (HR&CE) 2022 · EO Gr. I (HR&CE) 2024
Which was the first country to implement GST in 1954?Correct Answer: B [France]
Explanation:
France was the first country to introduce a value added tax (GST) in 1954; India implemented GST on 1 July 2017.
7.
CBT 2022 · Combined Accounts Service 2024
Which tax replaced multiple indirect taxes (including Central VAT and Service Tax) in 2017?Correct Answer: C [Goods and Services Tax]
Explanation:
The Goods and Services Tax, effective 1 July 2017, subsumed many indirect taxes such as central excise, service tax, VAT and entry tax.
8.
Group 1 2022
The Chairman of Goods and Services Tax (GST) Council in India isCorrect Answer: C [Union Finance Minister]
Explanation:
Under Article 279A the Union Finance Minister chairs the GST Council, whose members include state finance ministers.
9.
JR 2023 · Junior Technical Asst. (Textile) 2023
In India GST came into effect fromCorrect Answer: C [1 July 2017]
Explanation:
GST came into effect on 1 July 2017 after the 101st Constitutional Amendment Act of 2016.
10.
Bursar 2023
Goods and Service Tax (GST) is aCorrect Answer: B [Indirect Tax]
Explanation:
GST is an indirect tax because the burden passes to the consumer through the price, unlike income tax or corporate tax.
11.
AJ 2023
______ committee proposed GST in India.Correct Answer: B [Kelkar Task Force]
Explanation:
The Kelkar Task Force on implementing the FRBM Act (2004), headed by Vijay Kelkar, proposed a national-level GST.
12.
Group 1 2024
The motto 'One Tax, One Market, One Nation' is associated withCorrect Answer: C [Goods and Services Tax (GST)]
Explanation:
One Tax, One Market, One Nation describes GST, which merges many indirect taxes into a single tax and common national market.
13.
Group 2/2A 2025
Tax incentives for startup companies for a period of three years have been introduced in theCorrect Answer: A [Finance Act, 2016]
Explanation:
The Finance Act 2016 added Section 80-IAC to the Income Tax Act, giving eligible startups a tax holiday for three consecutive years after Startup India.
? Full explanations with tables – Indian Economy PYQ book (₹149): www.shanmugamiasacademy.in/study-materials/tnpsc-indian-economy-pyq
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