UPSC Prelims Practice Questions — GST revenue rises to ₹2.03 lakh cr. in Sept.

Q1. With reference to the Goods and Services Tax (GST) on goods imported into India, consider the following statements: Which of the statements given above is/are correct?

  1. A supply of goods in the course of import into India is deemed to be a supply in the course of inter-State trade or commerce, and the tax on it is levied and collected by the Government of India.
  2. The tax collected on such imports is apportioned so that the State in which the imported goods are consumed receives a share of it.
  3. The countervailing duty and the special additional duty earlier levied on imports were subsumed in GST.
  • A. 2 and 3 only
  • B. 1, 2 and 3
  • C. 1 and 2 only
  • D. 1 and 3 only

Q2. Consider the following facts about GST collections in India in September 2026: (i) gross GST revenue grew 14.7% year-on-year; (ii) GST on imports grew about 26% while GST on domestic transactions grew about 10%; (iii) GST rates on many goods were lower than in September 2025. Which of the following inferences can be validly drawn from the above facts alone?

  1. The share of imports in gross GST revenue was higher than in September 2025.
  2. The year-on-year growth in gross GST revenue cannot be attributed to higher tax rates.
  3. Domestic manufacturing output declined in absolute terms compared with September 2025.
  4. The value of India's imports grew faster than the value of its exports in September 2026.
  • A. 2 and 3 only
  • B. 1, 3 and 4 only
  • C. 1, 2 and 4 only
  • D. 1 and 2 only

Q3. With reference to the decision-making of the Goods and Services Tax Council under Article 279A, consider the following statements: Which of the statements given above is/are correct?

  1. The Union Government, by its own vote alone, cannot secure the adoption of a recommendation of the Council.
  2. The States, if all of them vote together, can secure the adoption of a recommendation even when the Union Government votes against it.
  3. The Council is required to establish a mechanism to adjudicate disputes between the Union and the States arising out of its recommendations or their implementation.
  • A. 2 and 3 only
  • B. 1 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q4. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. The Supreme Court has held that recommendations of the GST Council have persuasive value and do not bind Parliament and the State Legislatures in every case.
  2. Under the Constitution, Parliament and the Legislature of every State have power to make laws with respect to the goods and services tax imposed by the Union or by such State.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct

Q5. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. A State Legislature cannot make a law levying GST on a supply of goods that takes place in the course of inter-State trade or commerce.
  2. GST on inter-State supplies is levied and collected by the Government of India, and its entire proceeds form part of the Consolidated Fund of India.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct

Q6. Consider the following: Under the Constitution as it stood in 2026, GST on which of the above can begin to be levied from a date recommended by the GST Council, without any further amendment of the Constitution?

  1. Natural gas
  2. Alcoholic liquor for human consumption
  3. Aviation turbine fuel
  4. High speed diesel
  • A. 1, 3 and 4 only
  • B. 1, 2, 3 and 4
  • C. 1 and 3 only
  • D. 2 and 4 only

Q7. Gross GST collections can rise even after GST rates are reduced. Consider the following developments: Which of the developments given above could, other things remaining the same, contribute to a rise in gross GST collections after such a rate cut?

  1. A rise in the volume of taxable purchases as lower rates reduce prices for buyers
  2. A shift in consumer demand from exempted goods towards taxable goods
  3. A slowdown in the growth of refunds paid to exporters
  4. Better invoice matching and audits that reduce under-reporting of sales
  • A. 2, 3 and 4 only
  • B. 1, 2, 3 and 4
  • C. 1 and 4 only
  • D. 1, 2 and 4 only

Q8. With reference to refunds under GST, consider the following statements: Which of the statements given above is/are correct?

  1. Treating exports as zero-rated means that the exporter receives neither credit nor refund of the GST paid on inputs used in the exported goods.
  2. An inverted duty structure, in which inputs are taxed at a higher rate than the output, can lead to accumulation of unutilised input tax credit for which a refund may be claimed.
  3. An exporter may export under bond without paying tax and then claim a refund of the input tax credit.
  • A. 1, 2 and 3
  • B. 3 only
  • C. 2 and 3 only
  • D. 1 and 2 only