The 'reverse charge mechanism' under GST is applicable when: MCQ with Answer and Explanation

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The 'reverse charge mechanism' under GST is applicable when:

A. the recipient is required to pay tax instead of the supplier

B. a registered supplier sells to an unregistered recipient

C. goods are imported only

D. goods are exported

Answer: Option A

Solution (By JKSSB Mock Tests)

Under reverse charge, the recipient pays GST instead of the supplier.

This question belongs to: Economy GK Economy Set 1

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Question #1

In the context of international trade, 'Voluntary Export Restraint' is an example of:

A. Free trade agreement

B. Tariff barrier

C. Export promotion measure

D. Non-tariff barrier

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Correct Answer: Option D

Explanation:
A Voluntary Export Restraint (VER) is a non-tariff barrier under which an exporting country agrees to limit the quantity of exports to a particular country.

This question belongs to: Economy GK Economy Set 1

Question #2

Basel III norms primarily focus on:

A. agricultural credit

B. capital adequacy, leverage and liquidity of banks

C. interest rate deregulation

D. priority sector lending

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Correct Answer: Option B

Explanation:
Basel III norms strengthen capital adequacy, leverage and liquidity requirements for banks.

This question belongs to: Economy GK Economy Set 1

Question #3

MCLR stands for:

A. Market Controlled Lending Rate

B. Minimum Cost of Lending Rate

C. Marginal Cost of Funds based Lending Rate

D. Maximum Cost of Lending Rate

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Correct Answer: Option C

Explanation:
MCLR is the Marginal Cost of Funds based Lending Rate used by banks to set lending rates.

This question belongs to: Economy GK Economy Set 1

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