The 'Goods and Services Tax' is considered a destination-based tax because: MCQ with Answer and Explanation

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The 'Goods and Services Tax' is considered a destination-based tax because:

A. tax is collected where goods are produced

B. tax is paid by the exporter

C. tax accrues to the state where goods are consumed

D. tax is collected only at the port

Answer: Option C

Solution (By JKSSB Mock Tests)

GST is destination-based, so tax revenue goes to the consuming state.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

Which of the following is a feature of Indian agriculture?

A. High capital intensity

B. Predominance of small and marginal holdings

C. High productivity

D. Low dependence on monsoon

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Correct Answer: Option B

Explanation:
Indian agriculture is characterised by predominance of small and marginal land holdings, dependence on monsoon, low productivity and labour intensity.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on foreign exchange conversion services is:

A. 5%

B. 18% on the service fee

C. 0%

D. 12%

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Correct Answer: Option B

Explanation:
Foreign exchange conversion services attract GST on the service fee at 18%.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Mahatma Gandhi Rural Employment Guarantee Act' was enacted in:

A. 2007

B. 2009

C. 2005

D. 2004

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Correct Answer: Option C

Explanation:
MGNREGA was enacted in 2005.

This question belongs to: Economy GK Economy Set 1

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