The 'Goods and Services Tax' on demerit goods is generally: MCQ with Answer and Explanation

Question

Share Report Error

The 'Goods and Services Tax' on demerit goods is generally:

A. 18%

B. 12%

C. 28% plus cess

D. 5%

Answer: Option C

Solution (By JKSSB Mock Tests)

Demerit goods like tobacco and aerated drinks attract 28% plus cess.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

Share Report

Which of the following is the primary objective of the Fiscal Responsibility and Budget Management (FRBM) Act in India?

A. To ensure inter-generational equity and fiscal sustainability

B. To eliminate all forms of taxation

C. To promote deficit financing through money creation

D. To increase fiscal deficit indefinitely

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option A

Explanation:
The FRBM Act aims to ensure fiscal discipline, inter-generational equity in fiscal management and long-term macroeconomic stability by setting targets for deficit reduction.

This question belongs to: Economy GK Economy Set 1

Question #2

Share Report

Which of the following is a component of the current account of the balance of payments?

A. Portfolio investment

B. External commercial borrowings

C. Trade in goods and services

D. Foreign direct investment

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
The current account includes merchandise trade, trade in services, primary income and secondary income (transfers). FDI, portfolio investment and ECBs are capital account items.

This question belongs to: Economy GK Economy Set 1