Q40. What does SGST stand for in India’s Goods and Services Tax framework?
[RRB NTPC CBT-I, 16 February 2021, Shift 2]
(A) Systemic Goods and Services Tax
(B) Special Goods and Services Tax
(C) State Goods and Services Tax
(D) Statutory Goods and Services Tax
Answer: (C) State Goods and Services Tax
Explanation: SGST means State Goods and Services Tax, ordinarily charged alongside CGST on intra-State taxable supplies. For inter-State supplies, IGST generally applies instead. This dual structure gives both Union and State governments taxing roles within the coordinated national GST system.
Q39. Which legal requirement explains why the Macro-Economic Framework Statement accompanies the Union Budget?
[UPSC CSE Prelims 2020]
(A) Longstanding convention only
(B) Articles 112 and 110 exclusively
(C) Article 113 exclusively
(D) Fiscal Responsibility and Budget Management Act, 2003
Answer: (D) Fiscal Responsibility and Budget Management Act, 2003
Explanation: The Fiscal Responsibility and Budget Management Act requires specified policy statements to accompany the annual financial statement. The Macro-Economic Framework Statement reviews economic growth and fiscal circumstances. Article 112 mandates the Budget itself but not this separate FRBM document.
Q38. In Union Budget Estimates 2019–20, arrange these receipts by descending GDP share:
I. Corporation tax;
II. Personal income tax;
III. GST; IV. Union excise duty.
[CDS General Knowledge, 8 November 2020]
(A) I, II, III, IV
(B) I, III, II, IV
(C) III, II, I, IV
(D) II, IV, III, I
Answer: (B) I, III, II, IV
Explanation: The examined Budget Estimates placed corporation tax ahead of GST, income tax and Union excise duty in the stated comparison. Relative tax shares can vary with growth and legislation, so these figures should be understood as fiscal-year-specific rather than timeless rankings.
Q37. Who advises the Governor about distributing State-collected taxes and fees between the State and Panchayats?
[CGPSC Civil Services Prelims 2019, Paper I]
(A) Chief Minister
(B) State Finance Minister
(C) State Finance Commission
(D) Zilla Parishad
Answer: (C) State Finance Commission
Explanation: Under Article 243I a State Finance Commission reviews the finances of Panchayats and recommends principles for allocating specified state taxes, fees and grants. The Governor constitutes the body. It is separate from the Union Finance Commission established under Article 280.
Q36. Which constitutional amendment enabled the Goods and Services Tax in India?
[CGPSC Civil Services Prelims 2019, Paper I]
(A) 98th Amendment Act
(B) 99th Amendment Act
(C) 100th Amendment Act
(D) 101st Amendment Act
Answer: (D) 101st Amendment Act
Explanation: The Constitution (101st Amendment) Act, 2016 established the framework for the dual GST model. It inserted provisions such as Article 279A creating the GST Council. The GST system began on 1 July 2017 after complementary Union and State legislation.
Q35. Which tax was NOT subsumed into India’s Goods and Services Tax?
[CGPSC Civil Services Prelims 2019, Paper I]
(A) Excise duty
(B) Customs duty
(C) Value Added Tax
(D) Service tax
Answer: (B) Customs duty
Explanation: Basic customs duty on imported goods continues separately from GST. The GST rollout subsumed numerous domestic central and state indirect taxes, including service tax and much of the former excise and VAT systems. Imports may attract both basic customs duty and applicable integrated GST.
Q34. If the government supplies a commodity free to consumers, how is its opportunity cost best described?
[UPSC CSE Prelims 2018]
(A) It becomes zero
(B) It is simply ignored
(C) It shifts from users to taxpayers
(D) It disappears into the government
Answer: (C) It shifts from users to taxpayers
Explanation: A zero user price does not eliminate the scarce labour and resources used to provide a service. Taxpayers finance the budget that meets its cost. Therefore the economic burden is shifted rather than removed, and alternative uses are forgone.
Q33. Which items were exempt from GST under the rules relevant to this examination?
I. Hulled cereal grains.
II. Cooked chicken eggs.
III. Processed canned fish.
IV. Advertising-bearing newspapers.
[UPSC CSE Prelims 2018]
(A) I only
(B) II and III only
(C) I, II and IV only
(D) I, II, III and IV
Answer: (C) I, II and IV only
Explanation: The examined exemption schedule covered the specified staple grains, cooked eggs and newspapers even when they carried advertising. Processed canned fish was not exempt. Tax classification should always be read with the rules prevailing during the paper year.
Q32. The Economic Survey of India is issued under which institution?
[CGPSC Civil Services Prelims 2018, Paper I]
(A) Planning Commission
(B) Reserve Bank of India
(C) Ministry of Finance
(D) Finance Commission
Answer: (C) Ministry of Finance
Explanation: The Economic Survey is prepared through the Ministry of Finance, historically by the Economic Division in the Department of Economic Affairs under the Chief Economic Adviser. Presented before the Budget, it reviews economic developments rather than being a legal appropriation of money.
Q31. Regarding tax incidence, assess:
I. Tax may be shifted forward when demand is more inelastic than supply.
II. Tax may be shifted backward when supply is more inelastic than demand.
[CDS General Knowledge, 4 February 2018]
(A) I only
(B) II only
(C) Both I and II
(D) Neither I nor II
Answer: (C) Both I and II
Explanation: The economically less elastic side of a market generally bears more of a tax burden because it adjusts quantity less when prices change. Relatively inelastic demand places a larger burden on buyers; relatively inelastic supply leaves more of the burden with sellers.
