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.

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Practice Questions

Page 83 of 111
Question #1641
The 'Goods and Services Tax' replaced which of the following state taxes?
A. Corporate tax
B. Wealth tax
C. Entry tax
D. Income tax
Discuss
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Correct Answer: Option C

Explanation:
GST subsumed entry tax and other indirect taxes.
This question belongs to: Economy GK Economy Set 1
Question #1642
The 'Goods and Services Tax' structure in India has how many main tax slabs?
A. 10
B. 7
C. 5
D. 3
Discuss
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Correct Answer: Option C

Explanation:
GST has five main slabs: 0%, 5%, 12%, 18% and 28%.
This question belongs to: Economy GK Economy Set 1
Question #1643
The 'GST compensation cess' is levied on which goods?
A. essential food items
B. luxury and sin goods
C. all goods
D. agricultural produce only
Discuss
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Correct Answer: Option B

Explanation:
GST compensation cess is levied on luxury and sin goods.
This question belongs to: Economy GK Economy Set 1
Question #1644
The 'Input Tax Credit' under GST is available for:
A. personal consumption
B. all goods and services
C. exempt supplies only
D. goods and services used for business purposes
Discuss
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Correct Answer: Option D

Explanation:
Input tax credit is available for inputs used for business purposes.
This question belongs to: Economy GK Economy Set 1
Question #1645
The 'Composition Scheme' under GST does not allow:
A. input tax credit
B. payment of tax
C. filing of returns
D. collection of tax from customers
Discuss
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Correct Answer: Option A

Explanation:
Composition dealers cannot claim input tax credit.
This question belongs to: Economy GK Economy Set 1
Question #1646
The 'Reverse Charge Mechanism' under GST shifts the tax liability to:
A. GST council
B. recipient
C. government
D. supplier
Discuss
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Correct Answer: Option B

Explanation:
Under reverse charge, the recipient of goods or services pays the tax.
This question belongs to: Economy GK Economy Set 1
Question #1647
The 'e-way bill' validity is based on:
A. type of vehicle
B. value of goods
C. number of goods
D. distance to be travelled
Discuss
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Correct Answer: Option D

Explanation:
E-way bill validity depends on the distance of movement.
This question belongs to: Economy GK Economy Set 1
Question #1648
The 'GST Suvidha Provider' is:
A. a tax official
B. a bank
C. a chartered accountant
D. an authorized private IT intermediary for GST compliance
Discuss
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Correct Answer: Option D

Explanation:
GST Suvidha Providers are authorized IT intermediaries for GST compliance services.
This question belongs to: Economy GK Economy Set 1
Question #1649
The 'Goods and Services Tax Network' was created as a:
A. statutory body
B. government department
C. special purpose vehicle
D. constitutional body
Discuss
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Correct Answer: Option C

Explanation:
GSTN was created as a special purpose vehicle to provide IT infrastructure for GST.
This question belongs to: Economy GK Economy Set 1
Question #1650
The 'GST Council' is chaired by the Union Finance Minister and includes which other representatives?
A. all state chief ministers
B. RBI governor
C. state finance ministers
D. SEBI chairman
Discuss
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Correct Answer: Option C

Explanation:
The GST Council includes state finance ministers as members, chaired by the Union Finance Minister.
This question belongs to: Economy GK Economy Set 1
Question #1651
The 'GST Council' secretariat is located in:
A. Gandhinagar
B. New Delhi
C. Mumbai
D. Bengaluru
Discuss
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Correct Answer: Option B

Explanation:
The GST Council secretariat is located in New Delhi.
This question belongs to: Economy GK Economy Set 1
Question #1652
The 'National Anti-profiteering Authority' under GST was set up to ensure:
A. fewer returns
B. higher GST collections
C. benefits of GST rate cuts are passed to consumers
D. more exports
Discuss
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Correct Answer: Option C

Explanation:
National Anti-profiteering Authority ensures that tax reductions are passed on to consumers.
This question belongs to: Economy GK Economy Set 1
Question #1653
The 'Goods and Services Tax' is considered a destination-based tax because:
A. tax is paid by the exporter
B. tax accrues to the state where goods are consumed
C. tax is collected only at the port
D. tax is collected where goods are produced
Discuss
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Correct Answer: Option B

Explanation:
GST is destination-based, so tax revenue goes to the consuming state.
This question belongs to: Economy GK Economy Set 1
Question #1654
The 'Integrated GST' on interstate supply is collected by:
A. the consuming state directly
B. the exporting state
C. the local body
D. the Central Government
Discuss
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Correct Answer: Option D

Explanation:
IGST is collected by the Central Government and then apportioned between Centre and states.
This question belongs to: Economy GK Economy Set 1
Question #1655
The 'Union Territory GST' is applicable in union territories that do not have:
A. a police force
B. a high court
C. their own legislature
D. a governor
Discuss
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Correct Answer: Option C

Explanation:
UTGST applies in union territories without legislature, alongside CGST.
This question belongs to: Economy GK Economy Set 1
Question #1656
The 'Goods and Services Tax' excludes which of the following from its purview?
A. Services
B. Manufactured goods
C. Imported goods
D. Alcoholic liquor for human consumption
Discuss
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Correct Answer: Option D

Explanation:
Alcoholic liquor for human consumption is outside GST.
This question belongs to: Economy GK Economy Set 1
Question #1657
The 'good and services tax' on petroleum crude, diesel, petrol, natural gas and aviation turbine fuel:
A. is presently outside GST
B. has been fully included
C. is levied at zero rate
D. is exempt
Discuss
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Correct Answer: Option A

Explanation:
These petroleum products are currently outside the GST regime.
This question belongs to: Economy GK Economy Set 1
Question #1658
The 'GST Council' can be convened by:
A. Union Finance Minister
B. Prime Minister
C. President
D. RBI Governor
Discuss
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Correct Answer: Option A

Explanation:
The Union Finance Minister can convene meetings of the GST Council.
This question belongs to: Economy GK Economy Set 1
Question #1659
The 'National Anti-profiteering Authority' was later replaced by which body under GST?
A. GST Appellate Tribunal
B. GST Council
C. Competition Commission of India
D. Central Board of Indirect Taxes and Customs
Discuss
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Correct Answer: Option C

Explanation:
The NAA's functions were transferred to the Competition Commission of India.
This question belongs to: Economy GK Economy Set 1
Question #1660
The 'Constitution (101st Amendment) Act, 2016' inserted which article for GST?
A. Article 324
B. Article 246A
C. Article 280
D. Article 356
Discuss
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Correct Answer: Option B

Explanation:
Article 246A was inserted by the 101st Amendment for GST.
This question belongs to: Economy GK Economy Set 1
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