Goods and Services Tax (GST) Developments CDS Questions

CDS Economy

Goods and Services Tax (GST) Developments MCQ Questions


1.
Goods and Services Tax (GST) is a type of:
A.
Direct tax
B.
Indirect tax
C.
Wealth tax
D.
Capital gains tax
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ANSWER :
B. Indirect tax
2.
GST was introduced in India with effect from:
A.
1 April 2016
B.
1 July 2017
C.
1 January 2017
D.
15 August 2017
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ANSWER :
B. 1 July 2017
3.
GST is levied on which of the following events?
A.
Manufacture of goods
B.
Sale of goods only
C.
Supply of goods or services
D.
Import of goods only
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ANSWER :
C. Supply of goods or services
4.
GST is based on which of the following principles of taxation?
A.
Origin-based taxation
B.
Income-based taxation
C.
Production-based taxation
D.
Destination-based consumption taxation
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ANSWER :
D. Destination-based consumption taxation
5.
Which of the following is the biggest expected advantage of GST for consumers?
A.
Increase in number of taxes
B.
More paperwork
C.
Higher prices of all goods
D.
Reduction in overall tax burden by removing cascading
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ANSWER :
D. Reduction in overall tax burden by removing cascading
6.
The phenomenon of 'tax on tax' that GST seeks to eliminate is called:
A.
Double entry
B.
Tax elasticity
C.
Tax buoyancy
D.
Cascading effect
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ANSWER :
D. Cascading effect