The 'GST' is a value-added tax because: MCQ with Answer and Explanation

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The 'GST' is a value-added tax because:

A. it is levied on turnover

B. it is collected at source

C. it is a direct tax

D. input tax credit is available

Answer: Option D

Solution (By JKSSB Mock Tests)

GST is a value-added tax because input tax credit avoids cascading.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The concept of 'Automatic Stabilisers' in fiscal policy includes:

A. Progressive taxation and unemployment benefits

B. Open market operations

C. Discretionary changes in tax rates

D. Changes in bank rate

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Correct Answer: Option A

Explanation:
Automatic stabilisers such as progressive income taxes and unemployment benefits automatically moderate economic fluctuations without requiring new policy decisions.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on alcohol for human consumption is:

A. 5%

B. 0%

C. 18%

D. not under GST

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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 #3

Automatic stabilizers in fiscal policy include:

A. changes in repo rate

B. discretionary changes in government spending

C. open market operations

D. progressive income taxes and unemployment benefits

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Correct Answer: Option D

Explanation:
Automatic stabilizers such as progressive taxes and unemployment benefits automatically reduce economic fluctuations.

This question belongs to: Economy GK Economy Set 1

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