Economy Set 1 MCQs

Economy GK

Economy Set 1 MCQs

Practice Economy GK MCQs on basic economic concepts including economy, economics, microeconomics, macroeconomics, goods and services, demand and supply, factors of production, opportunity cost, economic activities, sectors of economy and other fundamental concepts frequently asked in SSC, Railway, Banking, UPSC, JKSSB, JKPSC, Police, Defence and other competitive examinations.

2220
Total Questions

Practice Questions

Page 111 of 111
Question #2201
The 'Central Goods and Services Tax Act' was passed in which year?
A. 2015
B. 2017
C. 2018
D. 2016
Discuss
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Correct Answer: Option B

Explanation:
CGST Act was passed in 2017.
This question belongs to: Economy GK Economy Set 1
Question #2202
The 'Integrated Goods and Services Tax Act' was passed in which year?
A. 2016
B. 2015
C. 2018
D. 2017
Discuss
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Correct Answer: Option D

Explanation:
IGST Act was passed in 2017.
This question belongs to: Economy GK Economy Set 1
Question #2203
The 'Union Territory Goods and Services Tax Act' was passed in which year?
A. 2018
B. 2015
C. 2017
D. 2016
Discuss
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Correct Answer: Option C

Explanation:
UTGST Act was passed in 2017.
This question belongs to: Economy GK Economy Set 1
Question #2204
The 'Goods and Services Tax (Compensation to States) Act' was passed in which year?
A. 2015
B. 2017
C. 2016
D. 2018
Discuss
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Correct Answer: Option B

Explanation:
The GST Compensation to States Act was passed in 2017.
This question belongs to: Economy GK Economy Set 1
Question #2205
The 'Goods and Services Tax' was launched in India on which date?
A. 1 January 2017
B. 1 April 2017
C. 15 August 2017
D. 1 July 2017
Discuss
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Correct Answer: Option D

Explanation:
GST was launched on 1 July 2017.
This question belongs to: Economy GK Economy Set 1
Question #2206
The 'Goods and Services Tax' is often described as a game-changing reform because it:
A. unified the Indian market and simplified indirect taxes
B. removed all taxes
C. increased direct tax
D. increased many taxes
Discuss
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Correct Answer: Option A

Explanation:
GST unified the Indian market and simplified indirect taxation.
This question belongs to: Economy GK Economy Set 1
Question #2207
The 'Goods and Services Tax' has increased tax compliance through:
A. IT-based systems like e-invoicing and input tax credit matching
B. no returns
C. only annual filing
D. manual returns only
Discuss
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Correct Answer: Option A

Explanation:
GST compliance is enhanced by e-invoicing, electronic returns and input tax credit matching.
This question belongs to: Economy GK Economy Set 1
Question #2208
The 'Goods and Services Tax' is a consumption-based tax because it is levied at:
A. import stage only
B. the point of supply for final consumption
C. production stage only
D. export stage
Discuss
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Correct Answer: Option B

Explanation:
GST is a destination-based consumption tax levied at the point of supply.
This question belongs to: Economy GK Economy Set 1
Question #2209
The 'Goods and Services Tax' on a supply is determined by the:
A. type of product only
B. place of supply
C. mode of payment
D. location of supplier
Discuss
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Correct Answer: Option B

Explanation:
GST liability depends on the place of supply and the nature of supply.
This question belongs to: Economy GK Economy Set 1
Question #2210
The 'Goods and Services Tax' rate applicable to a supply is determined by:
A. President
B. GST Council
C. RBI
D. SEBI
Discuss
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Correct Answer: Option B

Explanation:
GST rates are recommended by the GST Council.
This question belongs to: Economy GK Economy Set 1
Question #2211
The 'Goods and Services Tax' on a transaction is payable by the:
A. government
B. supplier, except under reverse charge
C. GST Council
D. buyer always
Discuss
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Correct Answer: Option B

Explanation:
Generally the supplier pays GST, but under reverse charge the recipient pays.
This question belongs to: Economy GK Economy Set 1
Question #2212
The 'Goods and Services Tax' input tax credit is claimed by:
A. the final consumer
B. registered businesses on their purchases
C. the government
D. unregistered dealers
Discuss
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Correct Answer: Option B

Explanation:
Registered businesses can claim input tax credit on their purchases.
This question belongs to: Economy GK Economy Set 1
Question #2213
The 'Goods and Services Tax' has a threshold exemption for small businesses to reduce:
A. revenue
B. exports
C. compliance burden
D. imports
Discuss
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Correct Answer: Option C

Explanation:
Threshold exemption reduces compliance burden for small businesses.
This question belongs to: Economy GK Economy Set 1
Question #2214
The 'Goods and Services Tax' Composition Scheme is designed to:
A. increase compliance burden
B. increase tax rates
C. eliminate input tax credit for large taxpayers
D. reduce compliance burden for small taxpayers
Discuss
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Correct Answer: Option D

Explanation:
Composition scheme reduces compliance burden for small taxpayers.
This question belongs to: Economy GK Economy Set 1
Question #2215
The 'Goods and Services Tax' has enabled seamless input tax credit across states, which has eliminated:
A. tax cascading and barriers to interstate trade
B. customs duty
C. direct taxes
D. income tax
Discuss
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Correct Answer: Option A

Explanation:
Seamless ITC has removed cascading and eased interstate trade.
This question belongs to: Economy GK Economy Set 1
Question #2216
The 'Goods and Services Tax' on goods and services is a tax on:
A. consumption
B. property
C. income
D. wealth
Discuss
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Correct Answer: Option A

Explanation:
GST is a tax on consumption of goods and services.
This question belongs to: Economy GK Economy Set 1
Question #2217
The 'Goods and Services Tax' is an indirect tax because:
A. it is paid by the government
B. the burden can be shifted to the final consumer
C. it is paid by the seller only
D. it is paid only by companies
Discuss
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Correct Answer: Option B

Explanation:
GST is an indirect tax as the burden is ultimately borne by the final consumer.
This question belongs to: Economy GK Economy Set 1
Question #2218
The 'Goods and Services Tax' on imports is levied as:
A. UTGST only
B. CGST only
C. SGST only
D. IGST plus customs duty
Discuss
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Correct Answer: Option D

Explanation:
Imports attract IGST in addition to basic customs duty.
This question belongs to: Economy GK Economy Set 1
Question #2219
The 'Goods and Services Tax' zero rating on exports means:
A. exports are banned
B. exports are exempt with no input tax credit
C. exports are taxed at zero rate and input tax credit is allowed
D. exports are taxed at 5%
Discuss
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Correct Answer: Option C

Explanation:
Zero-rated supplies are taxed at 0% and allow input tax credit refunds.
This question belongs to: Economy GK Economy Set 1
Question #2220
The 'Goods and Services Tax' refund for exporters is available through:
A. SEBI
B. income tax return
C. GST refund mechanism
D. customs only
Discuss
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Correct Answer: Option C

Explanation:
Exporters can claim refunds of accumulated input tax credit under GST.
This question belongs to: Economy GK Economy Set 1
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