UPSC Prelims Practice Questions — The waning sheen

Q1. In the context of India's GST architecture, the term 'Import IGST' refers to which one of the following?

  • A. The Basic Customs Duty levied on goods imported into India under the Customs Tariff Act, 1975
  • B. The Integrated Goods and Services Tax levied on the import of goods, treated as an inter-State supply under Section 5 of the IGST Act, 2017
  • C. The Social Welfare Surcharge collected on imported goods in lieu of education cesses
  • D. The compensation cess levied on imported luxury and demerit goods to fund State revenue shortfalls

Q2. The Goods and Services Tax (GST) Council, which recommended the two-tier rate structure that came into effect in September 2025, is a constitutional body established under which of the following?

  • A. Article 246A, inserted by the 101st Constitutional Amendment Act, 2016
  • B. Article 269A, inserted by the 101st Constitutional Amendment Act, 2016
  • C. Article 279A, inserted by the 101st Constitutional Amendment Act, 2016
  • D. Article 280, as amended by the 88th Constitutional Amendment Act, 2003

Q3. With reference to the GST rate structure that came into effect after the 56th GST Council Meeting, as compared with the structure prevailing earlier, consider the following statements: 1. The 12% and 28% standard rate slabs have been abolished. 2. A special rate of 40% has been introduced on selected sin and demerit goods such as tobacco and aerated waters. 3. The new rates came into effect from 1 October 2025. Which of the statements given above is/are correct?

  1. The 12% and 28% standard rate slabs have been abolished.
  2. A special rate of 40% has been introduced on selected sin and demerit goods such as tobacco and aerated waters.
  3. The new rates came into effect from 1 October 2025.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q4. With reference to the GST rate structure notified after the 56th GST Council Meeting (in force from 22 September 2025), which of the following are correctly identified as features of the new structure? 1. A merit rate of 5% applicable on essentials and mass-consumption goods. 2. A standard rate of 18% applicable to most goods and services. 3. A special rate of 40% on selected sin and demerit goods. 4. Retention of the 28% slab exclusively for automobiles and consumer durables. Which of the above is/are correctly identified?

  1. A merit rate of 5% applicable on essentials and mass-consumption goods.
  2. A standard rate of 18% applicable to most goods and services.
  3. A special rate of 40% on selected sin and demerit goods.
  4. Retention of the 28% slab exclusively for automobiles and consumer durables.
  • A. 1, 2 and 3 only
  • B. 2 and 4 only
  • C. 1, 3 and 4
  • D. 1, 2, 3 and 4

Q5. Who is the ex-officio Chairperson of the GST Council that approved the 'two-tier' GST rate rationalisation in September 2025?

  • A. The Prime Minister of India
  • B. The Union Finance Minister
  • C. The Union Minister of State for Finance (Revenue)
  • D. The Chairperson of the Central Board of Indirect Taxes and Customs (CBIC)