UPSC Prelims Practice Questions — Nine Years of GST: Simplifying Taxation, Strengthening India

Question 1

Which one of the following most precisely describes the provision introduced by Article 246A of the Constitution of India?

Accepted Answer

It confers simultaneous power on Parliament and the State legislatures to make laws on the levy of GST on supply of goods and services

Answer

It empowers only the Government of India to levy and collect GST on inter-State supplies and apportion it between the Union and States

Answer

It establishes the Goods and Services Tax Council as a joint forum of the Centre and the States

Answer

It guarantees compensation to the States for any loss of revenue arising from the introduction of GST

Question 2

With reference to the Constitution (101st Amendment) Act, 2016, consider the following pairings of constitutional Articles with their function in the GST framework:
1. Article 246A — simultaneous power of the Union and the States to legislate on GST
2. Article 269A — levy and collection of GST on inter-State trade by the Government of India, with apportionment between the Union and the States
3. Article 279A — constitution of the Goods and Services Tax Council
4. Article 360 — power to declare a 'GST emergency' suspending State GST powers
Which of the above are correctly identified?

Accepted Answer

1, 2 and 3

Answer

1 and 3 only

Answer

2, 3 and 4

Answer

1, 2, 3 and 4

Question 3

Under India's dual GST model, which one of the following is the component levied and collected by the Central Government on inter-State supplies of goods and services and subsequently apportioned between the Union and the States?

Accepted Answer

Integrated GST (IGST)

Answer

Central GST (CGST)

Answer

State GST (SGST)

Answer

Union Territory GST (UTGST)

Question 4

The levy and collection of Central GST (CGST) on intra-State supplies of goods and services is governed primarily by which one of the following statutes?

Accepted Answer

The Central Goods and Services Tax Act, 2017

Answer

The Central Sales Tax Act, 1956

Answer

The Finance Act, 1994

Answer

The Constitution (101st Amendment) Act, 2016

Question 5

The decision to compress the four-tier GST slab structure into two principal rates of 5% and 18% (with a 40% special rate) was approved at which one of the following?

Accepted Answer

The 56th GST Council meeting held in September 2025

Answer

The 53rd GST Council meeting

Answer

The 50th GST Council meeting

Answer

The Union Budget 2025-26 presented in Parliament

Question 6

In the rationalized GST rate structure approved in 2025, the 40% rate is best described as which one of the following?

Accepted Answer

A special rate applicable to a small set of select sin and luxury goods

Answer

The new standard rate applicable to all services

Answer

The merit rate applicable to essential and mass-consumption items

Answer

A compensation cess levied in addition to the highest GST slab

Question 7

As per Article 279A, every decision of the GST Council must be taken by a majority of not less than which one of the following of the weighted votes of the members present and voting?

Accepted Answer

Three-fourths

Answer

Two-thirds

Answer

A simple majority (more than one-half)

Answer

Five-sixths

Question 8

Under Article 279A, who is the Chairperson of the Goods and Services Tax Council?

Accepted Answer

The Union Finance Minister

Answer

The Prime Minister of India

Answer

The Union Minister of State in charge of Revenue

Answer

The Union Finance Secretary

Question 9

Which one of the following financial years recorded the highest-ever gross GST collection of about ₹22.08 lakh crore, with a year-on-year growth of 9.4%?

Accepted Answer

FY 2024-25

Answer

FY 2023-24

Answer

FY 2022-23

Answer

FY 2021-22

Question 10

GST subsumed a web of 17+ central and state indirect taxes into a single levy with effect from which one of the following dates?

Accepted Answer

1 July 2017

Answer

16 September 2016

Answer

1 April 2017

Answer

1 April 2010

Question 11

Which one of the following entities provides the shared information-technology backbone for GST registration, return filing and the matching of input tax credit?

Accepted Answer

Goods and Services Tax Network (GSTN)

Answer

Central Board of Indirect Taxes and Customs (CBIC)

Answer

Central Board of Direct Taxes (CBDT)

Answer

GST Council Secretariat

Question 12

Under the GST (Compensation to States) framework, the compensation payable to a State was computed by assuming a guaranteed annual growth in its protected revenue of which one of the following over the base year 2015-16?

Accepted Answer

14%

Answer

10%

Answer

12%

Answer

16%

UPSC Prelims Practice Questions — Nine Years of GST: Simplifying Taxation, Strengthening India

Q1. Which one of the following most precisely describes the provision introduced by Article 246A of the Constitution of India?

Q3. Under India's dual GST model, which one of the following is the component levied and collected by the Central Government on inter-State supplies of goods and services and subsequently apportioned between the Union and the States?

Q4. The levy and collection of Central GST (CGST) on intra-State supplies of goods and services is governed primarily by which one of the following statutes?

Q5. The decision to compress the four-tier GST slab structure into two principal rates of 5% and 18% (with a 40% special rate) was approved at which one of the following?

Q6. In the rationalized GST rate structure approved in 2025, the 40% rate is best described as which one of the following?

Q7. As per Article 279A, every decision of the GST Council must be taken by a majority of not less than which one of the following of the weighted votes of the members present and voting?

Q8. Under Article 279A, who is the Chairperson of the Goods and Services Tax Council?

Q9. Which one of the following financial years recorded the highest-ever gross GST collection of about ₹22.08 lakh crore, with a year-on-year growth of 9.4%?

Q10. GST subsumed a web of 17+ central and state indirect taxes into a single levy with effect from which one of the following dates?

Q11. Which one of the following entities provides the shared information-technology backbone for GST registration, return filing and the matching of input tax credit?

Q12. Under the GST (Compensation to States) framework, the compensation payable to a State was computed by assuming a guaranteed annual growth in its protected revenue of which one of the following over the base year 2015-16?