UPSC Prelims Practice Questions — Recommendations of the 57th Meeting of the GST Council

Q1. With reference to decision-making in the Goods and Services Tax Council, and assuming every member present votes, consider the following statements: Which of the statements given above is/are correct?

  1. The Union Government can block a proposal by voting against it, even if every State present votes in favour.
  2. The States present, voting together against a proposal, can block it even if the Union Government votes in favour.
  3. A State that is absent from the meeting is not counted when deciding whether the required majority has been reached.
  • A. 2 and 3 only
  • B. 1 and 3 only
  • C. 1, 2 and 3
  • D. 1 and 2 only

Q2. At a meeting of the GST Council, the Union Government votes in favour of a proposal. Every State present also votes, and each State's vote carries equal weight. For the proposal to be carried, what is the smallest proportion of the States present and voting that must support it?

  • A. Two-thirds
  • B. One-half
  • C. Three-fourths
  • D. Five-eighths

Q3. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. In Union of India v. Mohit Minerals (2022), the Supreme Court held that the recommendations of the GST Council have persuasive value and are not binding on Parliament and the State Legislatures.
  2. Under Article 246A, Parliament and the State Legislatures have simultaneous power to make laws with respect to goods and services tax.
  • 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

Q4. The GST Council has recommended reforms to the cancellation of GST registration that need changes to both the CGST Act, 2017 and the CGST Rules, 2017. In this context, consider the following statements: Which of the statements given above is/are correct?

  1. A Council recommendation to amend the CGST Act takes effect in every State without the State Legislatures amending their own State GST laws.
  2. The changes needed in the CGST Act require Parliament to act, whereas the changes in the CGST Rules can be made by executive notification.
  3. Article 279A requires the Council to set up a mechanism to settle disputes between the Union and the States that arise from its recommendations or their implementation.
  • A. 2 and 3 only
  • B. 1 and 2 only
  • C. 1, 2 and 3
  • D. 1 and 3 only

Q5. With reference to the constitutional design of GST in India, consider the following statements: Which of the statements given above are correct?

  1. Tax on an inter-State supply is levied and collected by the Union and apportioned between the Union and the States in the manner Parliament provides by law on the Council's recommendation.
  2. A single intra-State supply attracts both a Central levy and a State levy of GST at the same time.
  3. Alcohol for human consumption is outside the purview of GST.
  4. As with Concurrent List subjects, a conflict between a Union GST law and a State GST law is resolved by the repugnancy rule in Article 254.
  • A. 1 and 2 only
  • B. 1, 2 and 3 only
  • C. 1, 2, 3 and 4
  • D. 2, 3 and 4 only

Q6. Under Article 279A of the Constitution, the GST Council may make recommendations on which of the following?

  1. The date from which GST will be levied on petroleum crude, high speed diesel, petrol, natural gas and aviation turbine fuel
  2. A special rate for a specified period to raise additional resources during a natural calamity or disaster
  3. Special provisions for certain States, such as the North-Eastern and hill States
  4. The share of the States in the net proceeds of Union taxes that are divisible between the Union and the States
  • A. 1, 2 and 3 only
  • B. 2, 3 and 4 only
  • C. 1 and 2 only
  • D. 1, 2, 3 and 4

Q7. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. Under GST, tax revenue from goods produced in one State and consumed in another is meant to go to the consuming State rather than the producing State.
  2. Article 246A gives Parliament exclusive power to make laws on goods and services tax where the supply takes place in the course of inter-State trade or commerce.
  • 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

Q8. Consider the following assertion: Dropping the proposed additional tax of up to 1% on inter-State supplies from the GST constitutional amendment was consistent with the basic design of GST. Which of the statements given above support(s) the assertion?

  1. A levy on inter-State supplies that could not be set off down the chain would have reintroduced tax-on-tax.
  2. A separate charge on goods crossing State borders would have worked against a single national market.
  3. GST is meant to be collected only once, at the final sale to the consumer, so any levy at an earlier stage is foreign to it.
  • A. 1 only
  • B. 1, 2 and 3
  • C. 1 and 2 only
  • D. 2 and 3 only