GST, Taxation & Financial Literacy

Question 1

Which constitutional amendment introduced GST?‌​‍

Accepted Answer

101st — 101st Amendment (2016). Implemented 1 July 2017.‌​‍

Answer

99th

Answer

100th

Answer

102nd

Question 2

Who chairs the GST Council?‌​‍

Accepted Answer

Union Finance Minister — Union FM chairs GST Council. Includes all state FMs.‌​‍

Answer

PM

Answer

President

Answer

RBI Governor

Question 3

What does GST replace?‌​‍

Accepted Answer

Multiple indirect taxes — Replaced VAT, Service Tax, Excise Duty, etc. — 'One Nation One Tax'.‌​‍

Answer

Income Tax

Answer

Property Tax

Answer

Corporate Tax

Question 4

How many tax slabs does GST have?‌​‍

Accepted Answer

5 — 5 slabs: 0%, 5%, 12%, 18%, 28%.‌​‍

Answer

3

Answer

4

Answer

6

Question 5

What type of tax is Income Tax?‌​‍

Accepted Answer

Direct Tax — Direct Tax — paid by the person on whom it's levied. Cannot be shifted.‌​‍

Answer

Indirect Tax

Answer

Both

Answer

Neither

Question 6

What type of tax is GST?‌​‍

Accepted Answer

Indirect Tax — Indirect Tax — shifted to the consumer.‌​‍

Answer

Direct Tax

Answer

Both

Answer

Neither

Question 7

What does PAN stand for?‌​‍

Accepted Answer

Permanent Account Number — PAN = Permanent Account Number (10-digit alphanumeric by Income Tax dept).‌​‍

Answer

Public Account Number

Answer

Personal Access Number

Answer

Payment Authorization Number

Question 8

What does TDS stand for?‌​‍

Accepted Answer

Tax Deducted at Source — TDS = Tax Deducted at Source — tax deducted from salary/payment before it reaches you.‌​‍

Answer

Total Domestic Sales

Answer

Tax Department Service

Answer

Trade Deposit Scheme

Question 9

What does FDI stand for?‌​‍

Accepted Answer

Foreign Direct Investment — FDI = Foreign Direct Investment — foreign companies investing in Indian businesses.‌​‍

Answer

Fixed Deposit Investment

Answer

Financial Development Index

Answer

Federal Deposit Insurance

Question 10

FEMA stands for:‌​‍

Accepted Answer

Foreign Exchange Management Act — FEMA 1999 replaced FERA. Governs foreign exchange transactions in India.‌​‍

Answer

Federal Emergency Management Agency

Answer

Financial Exchange Monitoring Act

Answer

Foreign Economic Monitoring Authority

Question 11

What does SLR stand for?‌​‍

Accepted Answer

Statutory Liquidity Ratio — SLR = % of deposits banks must maintain in liquid assets (gold, govt securities).‌​‍

Answer

Standard Lending Rate

Answer

State Level Revenue

Answer

Savings and Loan Rate

Question 12

Fiscal deficit is equal to which of the following?‌​‍

Accepted Answer

Total expenditure - total income — Fiscal deficit = total govt expenditure - total govt income (excluding borrowings).‌​‍

Answer

Total income - total expenditure

Answer

Exports - imports

Answer

None

Question 13

Which government body collects Income Tax?‌​‍

Accepted Answer

CBDT — CBDT (Central Board of Direct Taxes) under Ministry of Finance.‌​‍

Answer

RBI

Answer

SEBI

Answer

CBIC

Question 14

Which government body is responsible for collecting the Goods and Services Tax (GST)?‌​‍

Accepted Answer

CBIC — CBIC (Central Board of Indirect Taxes and Customs).‌​‍

Answer

CBDT

Answer

RBI

Answer

SEBI

Question 15

What does inflation mean?‌​‍

Accepted Answer

Rise in general price level — Inflation = sustained increase in general price level → reduces purchasing power of money.‌​‍

Answer

Fall in prices

Answer

Stable prices

Answer

Falling currency value only

GST, Taxation & Financial Literacy