Question map
Not attempted Correct Incorrect ★ Bookmarked
Loading…
Q51 (CDS-I/2017) Economy › Government Finance & Budget › Goods and Services Tax Answer Verified

Which one of the following statements is correct in relation to the GST Bill passed by the Rajya Sabha in August 2016?

Result
Your answer: —  Â·  Correct: B
Explanation

The Goods and Services Tax (GST) Bill, passed by the Rajya Sabha on August 3, 2016, and enacted as the 101st Constitutional Amendment Act, was designed to create a comprehensive indirect tax regime [4]. Its primary objective was to subsume various indirect taxes, duties, and cesses previously levied by both the Central and State Governments [5]. Central taxes subsumed include Central Excise Duty and Service Tax, while State taxes include VAT, Entry Tax, and Luxury Tax [5]. Regarding exclusions, alcoholic liquor for human consumption is constitutionally kept outside the ambit of GST, with States retaining the power to levy VAT on it [3]. While petroleum products are technically included in the GST framework, the Act specifies that they will only be subjected to GST from a future date notified by the GST Council; until then, existing Central Excise and State VAT continue to apply [3].

Sources

  1. [1] Macroeconomics (NCERT class XII 2025 ed.) > Chapter 5: Government Budget and the Economy > Box 5.3: GST: One Nation, One Tax, One Market > p. 83
  2. [4] Indian Polity, M. Laxmikanth(7th ed.) > Chapter 47: Goods and Services Tax Council > ESTABLISHMENT > p. 434
  3. [2] Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 25: DISTRIBUTION OF FINANCIAL POWERS > The States, similarly, have their receipts from- > p. 392
  4. [5] https://cag.gov.in/uploads/download_audit_report/2019/Chapter_1_Implementation_of_GST_of_Report_No_11_of_2019_Compliance_Audit_of_Union_Government_Department_of_Revenue_Indirect_Taxes_Goods_and_Services_Tax.pdf
  5. [3] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > OTHER INDIRECT TAXES NOT REPLACED BY GST > p. 96
How others answered
Each bar shows the % of students who chose that option. Green bar = correct answer, blue outline = your choice.
Community Performance
Out of everyone who attempted this question.
50%
got it right
✓ Thank you! We'll review this.

SIMILAR QUESTIONS

CAPF · 2020 · Q82 Relevance score: 2.13

Which of the following statements) regarding passing a law under the State List is/are correct ? 1. Even in the sphere (State List) exclusively reserved for the States, Parliament can legislate under certain circumstances 2. Parliament cannot legislate a subject under the State List under any circumstances 3. A resolution supported by two-, thirds of the members present and voting is required to be passed by Rajya Sabha to pass a law under the State List Select the correct answer using the code given below:

IAS · 2006 · Q48 Relevance score: 1.81

Consider the following statements: I. The Rajya Sabha alone has the power to declare that it would be in national interest for the Parliament to legislature with respect to a matter in the State List. II. Resolutions approving the Proclamation of Emergency are passed only by the Lok Sabha. Which of the statements given above is/are correct?

IAS · 2024 · Q68 Relevance score: 1.76

Which of the following statements are correct in respect of a Money Bill in the Parliament ? 1. Article 109 mentions special procedure in respect of Money Bills. 2. A Money Bill shall not be introduced in the Council of States. 3. The Rajya Sabha can either approve the Bill or suggest changes but cannot reject it. 4. Amendments to a Money Bill suggested by the Rajya Sabha have to be accepted by the Lok Sabha. Select the answer using the code given below :

CDS-I · 2024 · Q19 Relevance score: 1.03

Which one of the following statements regarding GST is not correct? (a) Amendment 115 to the Constitution of India kept alcohol for human use and five petroleum products outside the ambit of GST. (b) Amendment 122 to the Constitution of India kept only alcohol for human use outside the ambit of GST. (c) Precious metals are taxed at a rate of 1% under GST. (d) Unworked diamond is taxed at a rate of 0-25%.

CAPF · 2016 · Q100 Relevance score: 0.86

With regard to a Constitution Amendment Bill, which one of the following statements is not correct?