UPSC Prelims Practice Questions — Unwelcome surge

Q1. What was India's gross GST collection (in ₹ lakh crore) for June 2026, as released by the Ministry of Finance?

  • A. ₹1.74 lakh crore
  • B. ₹1.85 lakh crore
  • C. ₹1.95 lakh crore
  • D. ₹2.10 lakh crore

Q2. In June 2026, which single component of GST recorded the sharpest year-on-year growth, making it the principal driver of the headline surge?

  • A. Central GST (CGST) from domestic transactions
  • B. State GST (SGST) from domestic transactions
  • C. Integrated GST on imports (import IGST)
  • D. Domestic Integrated GST (IGST)

Q3. Which one of the following best describes the concept of 'imported inflation'?

  • A. A rise in the domestic price level caused by higher prices of imported goods and inputs (such as crude oil), often aggravated by currency depreciation
  • B. Inflation arising when aggregate domestic demand outstrips domestic productive capacity
  • C. A rise in prices caused primarily by an increase in domestic indirect tax rates such as GST
  • D. Inflation resulting from domestic wage growth exceeding productivity growth

Q4. The Goods and Services Tax in India has a four-tier rate structure. How many principal ad valorem rate slabs (excluding the compensation cess) does it comprise?

  • A. Three
  • B. Four
  • C. Five
  • D. Six

Q5. Which one of the following is the nodal agency that administers and collects Central GST and Integrated GST (including IGST on imports at ports of entry)?

  • A. Central Board of Indirect Taxes and Customs (CBIC), under the Department of Revenue, Ministry of Finance
  • B. Central Board of Direct Taxes (CBDT)
  • C. The GST Council Secretariat
  • D. NITI Aayog

Q6. In the GST Council constituted under Article 279A, the vote of the Central Government carries a weightage of:

  • A. One-half of the total votes cast
  • B. One-third of the total votes cast
  • C. One-fourth of the total votes cast
  • D. Two-thirds of the total votes cast

Q7. With reference to the trend in gross GST collections over recent years, which of the following statements is/are NOT correct?

  1. The average monthly gross GST collection in FY2020-21 was about ₹95,000 crore.
  2. Total gross GST collection in FY2024-25 was about ₹22.08 lakh crore.
  3. The average monthly collection in FY2024-25 was about ₹1.84 lakh crore.
  4. Gross GST collections in FY2024-25 declined relative to FY2023-24.
  • A. 1 only
  • B. 2 and 3
  • C. 4 only
  • D. 1 and 4