UPSC Prelims Practice Questions — GST revenue grows 14.8% in Aug. to nearly ₹2 lakh crore

Question 1

With reference to the levies that were merged into the Goods and Services Tax when it was rolled out under the Constitution (101st Amendment) Act, 2016, consider the following:
1. Central Sales Tax
2. Basic Customs Duty
3. Entertainment tax levied by local bodies
4. Special Additional Duty of Customs
Which of the above is/are correctly identified as taxes subsumed into GST?

Accepted Answer

1 and 4

Answer

2 and 3

Answer

1, 3 and 4

Answer

2 and 4 only

Question 2

Apart from alcoholic liquor for human consumption, how many petroleum products were kept outside the ambit of GST at its roll-out, their inclusion being deferred to a date to be recommended by the GST Council?

Accepted Answer

Five

Answer

Three

Answer

Four

Answer

Six

Question 3

Consider the following statements regarding the GST collection data for August 2026:
1. Gross GST collections exceeded ₹1.99 lakh crore, while net collections after refunds stood at about ₹1.68 lakh crore.
2. Cumulative gross GST collections for April–August of the financial year stood at about ₹10.43 lakh crore, a growth of about 11% over the corresponding period of the previous year.
3. Net GST collections in August 2026 were higher than the net GST collections of the immediately preceding month.
Which of the statements given above is/are correct?

Accepted Answer

1 and 2 only

Answer

1 only

Answer

2 and 3 only

Answer

1, 2 and 3

Question 4

Among the following heads of the August 2026 GST data, which one registered the highest year-on-year percentage growth?

Accepted Answer

Gross GST revenue from the import of goods

Answer

Gross GST revenue from domestic transactions

Answer

Net GST revenue remaining after all refunds

Answer

Cumulative gross GST revenue for April–August

Question 5

Consider the following statements about the base-year revision that affected the reported August 2026 GST growth rate:
1. The gross GST figure for August 2025, originally reported at about ₹1.86 lakh crore, was subsequently revised downward to about ₹1.74 lakh crore.
2. Had the originally reported August 2025 figure been retained as the base, the year-on-year growth for August 2026 would have worked out to about 7% rather than 14.8%.
3. The revision raised the reported year-on-year growth rate while leaving the absolute August 2026 collection figure unaffected.
Which of the statements given above is/are correct?

Accepted Answer

1, 2 and 3

Answer

1 only

Answer

1 and 3 only

Answer

2 and 3 only

Question 6

The monthly gross and net GST collection figures, including subsequent revisions to previously published months, are compiled and released by which one of the following?

Accepted Answer

The Ministry of Finance, using data generated on the Goods and Services Tax Network

Answer

The National Statistical Office, under the Ministry of Statistics and Programme Implementation

Answer

The Reserve Bank of India, through its Department of Statistics and Information Management

Answer

The Comptroller and Auditor General of India, through the monthly accounts of the Union

Question 7

In the monthly GST releases, the head 'revenue from import of goods' refers to which one of the following?

Accepted Answer

Integrated GST, together with cess, levied on goods brought into India, over and above the basic customs duty

Answer

Basic customs duty on imported goods, which stands entirely subsumed within the Integrated GST charged at the port

Answer

Central GST and State GST charged in equal halves on every consignment cleared at the port of entry

Answer

The whole of the import duties collected, all of which is permanently retained by the Centre without apportionment

Question 8

Consider the following statements comparing the import and domestic components of GST revenue:
1. In August 2026, gross GST revenue from imports grew about 29% to ₹62,604 crore, while gross domestic GST revenue grew about 9.3%.
2. In April 2025, revenue from imported goods had likewise grown faster than domestic revenue, at about 20.8% against about 10.7%.
3. In August 2026, revenue from imports accounted for more than half of the gross GST collections of the month.
Which of the statements given above is/are correct?

Accepted Answer

1 and 2 only

Answer

1 and 3 only

Answer

2 and 3 only

Answer

1, 2 and 3

Question 9

With reference to the inverted duty structure under GST and the refund surge reported in August 2026, consider the following statements:
1. An inverted duty structure arises where the rate of tax on inputs is higher than the rate of tax on output supplies.
2. Refund of input tax credit accumulated on account of an inverted duty structure is provided for under Section 54(3) of the CGST Act, 2017.
3. In August 2026, domestic refunds nearly doubled to about ₹18,490 crore while export refunds rose about 61.8% to about ₹13,305 crore.
4. Such a refund is admissible whenever inputs bear a higher rate than outputs, including where the inversion is temporary and arises merely from a rate change.
Which of the above is/are NOT correct?

Accepted Answer

4 only

Answer

1 and 2

Answer

2 and 3

Answer

3 and 4

Question 10

As used in official releases up to the close of the financial year 2024-25, the expression 'highest-ever monthly gross GST collection' denoted which one of the following?

Accepted Answer

About ₹2.10 lakh crore, collected in April 2024

Answer

About ₹1.78 lakh crore, collected in March 2024

Answer

About ₹1.95 lakh crore, collected in January 2025

Answer

About ₹2.37 lakh crore, collected in April 2025

Question 11

At the level of the Union Government, the levy, collection and administration of CGST and IGST, including the compensation cess, is carried out through which one of the following?

Accepted Answer

The Central Board of Indirect Taxes and Customs, under the Department of Revenue

Answer

The Central Board of Direct Taxes, under the Department of Revenue

Answer

The Controller General of Accounts, under the Department of Expenditure

Answer

The Budget Division, under the Department of Economic Affairs

Question 12

The Goods and Services Tax Network was incorporated as a not-for-profit company under which enactment, and what is its present ownership pattern?

Accepted Answer

Section 25 of the Companies Act, 1956, now Section 8 of the Companies Act, 2013; Centre 50% and States and UTs together 50%

Answer

Section 8 of the Companies Act, 2013; Centre 24.5%, States 24.5% and non-Government financial institutions 51%

Answer

Section 25 of the Companies Act, 1956; Centre 51% and States and UTs together 49%, mirroring the GST Council's voting split

Answer

The Societies Registration Act, 1860; Centre and States in equal shares, with the GST Council holding the residual stake

UPSC Prelims Practice Questions — GST revenue grows 14.8% in Aug. to nearly ₹2 lakh crore

Q2. Apart from alcoholic liquor for human consumption, how many petroleum products were kept outside the ambit of GST at its roll-out, their inclusion being deferred to a date to be recommended by the GST Council?

Q4. Among the following heads of the August 2026 GST data, which one registered the highest year-on-year percentage growth?

Q6. The monthly gross and net GST collection figures, including subsequent revisions to previously published months, are compiled and released by which one of the following?

Q7. In the monthly GST releases, the head 'revenue from import of goods' refers to which one of the following?

Q10. As used in official releases up to the close of the financial year 2024-25, the expression 'highest-ever monthly gross GST collection' denoted which one of the following?

Q11. At the level of the Union Government, the levy, collection and administration of CGST and IGST, including the compensation cess, is carried out through which one of the following?

Q12. The Goods and Services Tax Network was incorporated as a not-for-profit company under which enactment, and what is its present ownership pattern?