UPSC Prelims Practice Questions — Import taxes lift March GST mop up to 10-month high

Q1. The levy and collection of GST, including IGST on imported goods, is administered at the central level by which one of the following bodies?

  • A. Central Board of Indirect Taxes and Customs (CBIC)
  • B. Central Board of Direct Taxes (CBDT)
  • C. Directorate General of Foreign Trade (DGFT)
  • D. Goods and Services Tax Network (GSTN)

Q2. GST is frequently described as a 'destination-based consumption tax'. Which one of the following best captures the meaning of this term?

  • A. The tax revenue accrues to the State where the goods or services are finally consumed
  • B. The tax revenue accrues to the State where the goods are manufactured or originate
  • C. The tax revenue is shared equally between the origin State and the destination State
  • D. The tax revenue accrues wholly to the Centre, irrespective of where consumption occurs

Q3. With reference to GST collections for March 2026, consider the following statements. Which of the above is/are NOT correct?

  1. Gross GST collection stood at ₹2,00,064 crore.
  2. Gross collection recorded a year-on-year growth of 8.8%.
  3. The collection was a 10-month high, the highest since May 2025.
  4. The ₹22.27 lakh crore figure represents the gross GST collected in the single month of March 2026.
  • A. 1 and 3
  • B. 2 and 4
  • C. 1, 2 and 4
  • D. 4 only

Q4. Within the March 2026 GST data, which one of the following recorded the highest year-on-year growth rate?

  • A. Import-linked GST revenue (+17.8%)
  • B. Domestic GST revenue (+5.9%)
  • C. Gross GST revenue (+8.8%)
  • D. Net GST revenue (+8.2%)

Q5. With reference to the divergence between import-linked and domestic GST growth in March 2026, consider the following statements. Which of the above is/are NOT correct?

  1. Import-linked gross GST grew by 17.8% year-on-year.
  2. Domestic gross GST grew by 5.9% year-on-year.
  3. On a net basis, import GST grew 23.8% while domestic GST grew only 3.6%.
  4. The faster growth of import GST conclusively proves a strengthening of domestic consumption demand.
  • A. 1 and 3
  • B. 2 only
  • C. 4 only
  • D. 1, 2 and 3

Q6. In the context of import-driven GST growth, 'pass-through of global commodity prices' refers to which one of the following?

  • A. A rise in global commodity (e.g., crude) prices inflating the rupee value of imports and hence import IGST, even without any real rise in import volumes
  • B. The transfer of apportioned IGST credit from the Centre to the consuming States
  • C. The refund of IGST to exporters on their zero-rated supplies
  • D. The subsuming of basic customs duty into the integrated GST on imports

Q7. Comparing March 2026 GST collection with earlier milestones, consider the following statements. Which of the statements given above is/are correct?

  1. The all-time high single-month gross GST collection was about ₹2.37 lakh crore, recorded in April 2025.
  2. Monthly gross GST collections became a routine ₹1 lakh crore-plus affair only from FY2021-22 onwards.
  3. March 2026 was the first ever month in which gross GST collection crossed the ₹2 lakh crore mark.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q8. Which one of the following best explains the gap between gross and net GST collections in a given month?

  • A. Refunds disbursed during the month, the largest part going to exporters on zero-rated supplies
  • B. The entire IGST collected on imports, which is always refunded in full
  • C. The SGST share that is devolved to the States
  • D. Compensation cess collections, which are wholly excluded from gross figures

Q9. Annual gross GST growth of about 8.3% in FY2025-26 (implying fiscal buoyancy near 1.0) most closely tracks which one of the following macro variables?

  • A. Nominal GDP growth
  • B. Real GDP growth
  • C. Wholesale Price Index inflation
  • D. The RBI's policy repo rate

Q10. With reference to the GST treatment of supplies made to Special Economic Zones, consider the following statements. Which of the above is/are NOT correct?

  1. Supplies to an SEZ developer or SEZ unit are treated as 'zero-rated supply' under Section 16 of the IGST Act, 2017.
  2. A supplier may make such supplies under a Letter of Undertaking without payment of IGST and claim refund of unutilised input tax credit.
  3. The zero-rated status applies only when the supply is made for the authorised operations of the SEZ.
  4. Supplies to an SEZ are exempt supplies on which no input tax credit can ever be claimed.
  • A. 1 and 2
  • B. 3 only
  • C. 4 only
  • D. 2 and 4