UPSC Prelims Practice Questions — Frequently Asked Questions (FAQs) for Health Security se National Security (HSNS) Cess Act, 2026 and HSNS Cess Rules, 2026

Q1. With reference to the constitutional provisions invoked while assessing whether the proceeds of the Health Security se National Security (HSNS) Cess, 2025 are shareable with the States, match List I (Article of the Constitution, given in numerical order) with List II (Subject Matter) and select the correct answer using the code given below:

  • A. A-4, B-2, C-1, D-3
  • B. A-2, B-4, C-3, D-1
  • C. A-4, B-1, C-2, D-3
  • D. A-2, B-4, C-1, D-3

Q2. At its commencement on 1 February 2026, how many categories of goods are covered within the scope of the Health Security se National Security (HSNS) Cess Act, 2025?

  • A. One
  • B. Two
  • C. Three
  • D. Four

Q3. With reference to the capacity-based levy under the Health Security se National Security (HSNS) Cess Act, 2025 and the HSNS Cess Rules, 2026, consider the following statements:

  1. The cess is levied on the machinery installed or the processes undertaken for manufacture, and not on the ad valorem value of the output.
  2. Manual manufacturing of pan masala attracts a flat monthly cess of ₹11 lakh per factory.
  3. The Central Government is empowered to double the prescribed rates of the cess if deemed necessary.
  4. The proceeds of the cess form part of the divisible pool of taxes and are shared with the States as per the Finance Commission's recommendations.
  • A. 1 and 2 only
  • B. 3 only
  • C. 4 only
  • D. 2 and 4 only

Q4. Which one of the following was the first GST Council meeting to recommend shifting the levy of Compensation Cess on pan masala and tobacco products from an ad valorem basis to a specific-rate, Retail Sale Price (RSP)-linked basis?

  • A. 49th GST Council meeting
  • B. 50th GST Council meeting
  • C. 52nd GST Council meeting
  • D. 53rd GST Council meeting

Q5. On which one of the following dates was the Health Security se National Security (HSNS) Cess Bill first introduced in the Lok Sabha?

  • A. 1 December 2025
  • B. 5 December 2025
  • C. 8 December 2025
  • D. 1 February 2026

Q6. Under the Health Security se National Security (HSNS) Cess Rules, 2026, which one of the following is the prescribed form for filing the monthly return on the ACES portal?

  • A. FORM HSNS REG-01
  • B. FORM HSNS DEC-01
  • C. FORM HSNS PMT-01
  • D. FORM HSNS RET-01

Q7. Match List I (Milestone in evolution of pan-masala cess regulation culminating in earmarking for public health and national security) with List II (Year/Month of occurrence) and select the correct answer using the code given below the Lists:

  • A. A-1, B-2, C-3, D-4
  • B. A-2, B-1, C-4, D-3
  • C. A-1, B-3, C-2, D-4
  • D. A-3, B-2, C-1, D-4