Resource sharing between union and state governments and Goods and Services Tax. - Question Bank

1. Who among the following has the ultimate authority to decide on the inclusion or exclusion of any item under GST?
A) The Finance Minister of India
B) The GST Council
C) The Parliament of India
D) The Prime Minister of India
2. The 'development administration' aspect in Tamil Nadu related to resource sharing emphasizes:
A) Centralized control over all resources
B) Effective planning and execution of welfare schemes
C) Minimal state intervention in economic activities
D) Prioritizing industrial development over social welfare
3. What is the primary mechanism for resolving disputes between the Union and States regarding GST?
A) The Supreme Court of India
B) The GST Council
C) The Parliament
D) Inter-state Tribunals
4. The Union Territories without a legislature have GST administered by:
A) The concerned Union Territory administration
B) The Central Government
C) A special GST Council
D) The Supreme Court
5. Which of the following is a territorial unit for GST administration in India?
A) District
B) Taluk
C) State
D) Panchayat
6. The 'Cascading Effect' of taxes, which GST aims to eliminate, refers to:
A) Tax on tax
B) Tax on income
C) Tax on exports
D) Tax on imports
7. Which of the following is a common tax base for both the Union and States after the introduction of GST?
A) Income Tax
B) Corporate Tax
C) Goods and Services Tax
D) Customs Duty
8. Article 246A of the Constitution grants the power to legislate with respect to GST to:
A) Parliament only
B) State Legislatures only
C) Both Parliament and State Legislatures
D) The President of India
9. In the context of GST, the sharing of revenue between the Union and States is managed through:
A) Direct allocation by the Prime Minister
B) Recommendations of the Finance Commission
C) Decisions of the GST Council
D) Bilateral agreements between states
10. Which entity in Tamil Nadu plays a crucial role in managing state finances and recommending resource allocation?
A) The Governor of Tamil Nadu
B) The Chief Secretary of Tamil Nadu
C) The Tamil Nadu Finance Department
D) The State Election Commission
11. The recommendations of the Finance Commission are generally binding on the government.
A) True, they are legally binding
B) False, they are advisory in nature
C) Binding only on the Union Government
D) Binding only on the State Governments
12. Development administration in Tamil Nadu, in the context of resource sharing, implies:
A) Central government dictating all financial matters
B) Efficient utilization of allocated resources for state development
C) Complete financial autonomy for local bodies
D) Abolition of all state taxes
13. Which of the following is an example of a service that is currently outside the purview of GST?
A) Hotel accommodation
B) Restaurant services
C) Alcohol for human consumption
D) Telecommunication services
14. The Goods and Services Tax (Compensation to States) Act, 2017 was enacted to provide for:
A) Increasing the GST rates
B) Compensating States for revenue loss due to GST implementation
C) Granting exemptions from GST
D) Modifying the GST structure
15. Which type of GST is levied on the import of goods into India?
A) CGST
B) SGST
C) IGST
D) UTGST
16. The 'dual GST' model adopted by India means that GST is levied by both the Central and State governments. This is reflected in:
A) CGST and SGST
B) IGST and VAT
C) Excise Duty and Service Tax
D) Customs Duty and Sales Tax
17. Which of the following is a major challenge associated with the implementation of GST in India?
A) Simplification of tax structure
B) Reduction in tax evasion
C) Complexity of dual GST structure
D) Increased tax revenue
18. The GST Council is a unique federal body that aims to foster cooperation between the Union and the States on GST matters. What is its primary function?
A) To legislate directly on GST
B) To advise the government on GST policy
C) To collect GST revenue
D) To audit GST compliance
19. Who appoints the members of the Finance Commission?
A) Prime Minister
B) President
C) Speaker of Lok Sabha
D) Chief Justice of India
20. The Finance Commission, a constitutional body, is responsible for making recommendations regarding:
A) Amendments to the Constitution
B) Appointment of Governors
C) Distribution of net proceeds of taxes between the Union and States
D) Declaration of National Emergency
21. Article 275 of the Constitution provides for:
A) Assignment of duties and taxes to States
B) Grants-in-aid to States
C) Distribution of revenues
D) Borrowing powers of the Union
22. Which of the following taxes are levied and collected by the Union and the proceeds are distributed between the Union and the States?
A) Taxes on agricultural income
B) Duties of excise on tobacco
C) Taxes on the sale or purchase of goods (other than newspapers) in the course of inter-State trade or commerce
D) Taxes on professions, trades, callings and employments
23. Which of the following taxes are levied by the Union but collected and appropriated by the States?
A) Customs duties
B) Taxes on income other than agricultural income
C) Stamp duties on negotiable instruments
D) Taxes on the sale or purchase of newspapers
24. Which Article deals with the power of the Union to levy taxes for the purpose of the Union?
A) Article 265
B) Article 268
C) Article 269
D) Article 270
25. The power to levy taxes is mentioned in which part of the Indian Constitution?
A) Part IX
B) Part X
C) Part XI
D) Part XII
26. In case of a conflict between a Union law and a State law on a subject in the Concurrent List, which law generally prevails?
A) The State law prevails
B) The Union law prevails
C) Both laws are invalid
D) The matter is decided by the President
27. Which Article of the Constitution empowers both the Parliament and State Legislatures to legislate on matters in the Concurrent List?
A) Article 246(1)
B) Article 246(2)
C) Article 246(3)
D) Article 246(4)
28. Which Article of the Constitution empowers the State Legislatures to legislate on matters in the State List?
A) Article 246(1)
B) Article 246(2)
C) Article 246(3)
D) Article 246(4)
29. Which Article of the Constitution empowers the Parliament to legislate on matters in the Union List?
A) Article 246(1)
B) Article 246(2)
C) Article 246(3)
D) Article 246(4)
30. The concept of 'Input Tax Credit' under GST allows businesses to claim credit for taxes paid on inputs. This helps to:
A) Increase the final price of goods
B) Avoid cascading tax effect
C) Encourage tax evasion
D) Reduce the number of tax filings
31. Which of the following is a key benefit of GST for businesses?
A) Increased compliance burden
B) Elimination of cascading effect of taxes
C) Reduced market competition
D) Higher tax rates on all goods
32. What is the primary objective of introducing GST in India?
A) To increase the number of taxes
B) To create a single, unified indirect tax system
C) To impose taxes only on luxury goods
D) To abolish all direct taxes
33. In the case of an inter-state supply of goods or services, which tax is levied?
A) CGST only
B) SGST only
C) IGST
D) CGST and SGST combined
34. IGST is levied by the Central Government on inter-state sales and imports. What does IGST stand for?
A) Internal Goods and Services Tax
B) Integrated Goods and Services Tax
C) International Goods and Services Tax
D) Indian Goods and Services Tax
35. SGST is levied by the State Government on intra-state sales. What does SGST stand for?
A) State Goods and Services Tax
B) Sales Goods and Services Tax
C) Service Goods and Services Tax
D) Societal Goods and Services Tax
36. CGST is levied by the Central Government on intra-state sales. What does CGST stand for?
A) Central Goods and Services Tax
B) Consumer Goods and Services Tax
C) Commercial Goods and Services Tax
D) Cooperative Goods and Services Tax
37. Which of the following is NOT a type of GST levied in India?
A) CGST (Central GST)
B) SGST (State GST)
C) IGST (Integrated GST)
D) UGST (Union GST)
38. GST is based on the principle of destination-based consumption taxation. This means the tax is levied at the place where the ______ occurs.
A) Production
B) Sale
C) Consumption
D) Import
39. Who is the ex-officio chairperson of the Goods and Services Tax Council?
A) Prime Minister of India
B) Finance Minister of India
C) Minister of Commerce and Industry
D) Governor of Reserve Bank of India
40. The Goods and Services Tax Council is a constitutional body responsible for making recommendations on GST rates, exemptions, and other related matters. Which Article establishes this council?
A) Article 279A
B) Article 269A
C) Article 246A
D) Article 280
41. Which of the following taxes was subsumed by the GST in India?
A) Income Tax
B) Corporate Tax
C) Value Added Tax (VAT)
D) Property Tax
42. GST is a ______ tax, meaning it is levied on the value addition at each stage of production and distribution.
A) Direct
B) Indirect
C) Progressive
D) Regressive
43. The Goods and Services Tax (GST) regime in India was implemented on which date?
A) April 1, 2016
B) July 1, 2017
C) January 1, 2018
D) April 1, 2018
44. Which constitutional amendment was primarily responsible for the introduction of the Goods and Services Tax (GST) in India?
A) 97th Amendment Act
B) 101st Amendment Act
C) 103rd Amendment Act
D) 104th Amendment Act
45. What is the term used for subjects not enumerated in any of the three lists, on which the Parliament has the power to legislate?
A) State Subjects
B) Concurrent Subjects
C) Residuary Subjects
D) Exclusive Subjects
46. Education, forests, and marriage are examples of subjects falling under which list, where both Parliament and State Legislatures can make laws?
A) Union List
B) State List
C) Concurrent List
D) Residuary List
47. Subjects like 'Public Order' and 'Police' are placed under which list, granting states the primary power to legislate on them?
A) Union List
B) State List
C) Concurrent List
D) Residuary List
48. Which list contains subjects on which only the Parliament can make laws?
A) Union List
B) State List
C) Concurrent List
D) Residuary List
49. The Seventh Schedule of the Indian Constitution enumerates three lists for the distribution of legislative powers. Which of the following is NOT one of these lists?
A) Union List
B) State List
C) Concurrent List
D) Local List
50. Which Article of the Indian Constitution deals with the distribution of legislative powers between the Union and the States?
A) Article 245
B) Article 246
C) Article 247
D) Article 248
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