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MCQs - 2026-03

2971.
The committee's review is essential for maintaining fiscal stability between:
A Local bodies and Panchayats.
B The Union and the state governments.
C Public sector banks and private banks.
D Manufacturing and service sectors.
2972.
What is the deadline for the committee to submit its report?
A Three months
B Six months
C One year
D Two years
2973.
The recommendations of this committee are expected to be crucial for:
A Only the central government's fiscal policy.
B Shaping India's indirect tax regime and ensuring fiscal stability.
C Regulating foreign direct investment.
D Managing India's foreign exchange reserves.
2974.
In addition to domestic practices, the committee will also study:
A Historical tax systems.
B International best practices in indirect taxation and fiscal transfers.
C The tax systems of non-GST countries.
D Company financial reports.
2975.
Which of the following is a potential suggestion the committee might make?
A Abolishing GST altogether.
B Merging the compensation cess with other GST rates or recommending new cess structures.
C Shifting entirely to a service tax system.
D Increasing customs duties significantly.
2976.
What is the committee expected to assess regarding the compensation cess?
A Its impact on consumer behavior only.
B Its revenue generation, impact on sectors, and suggest alternative models.
C The political viability of the cess.
D The administrative costs of its collection.
2977.
What is a key mandate of the committee concerning states' revenue?
A To suggest ways to reduce state revenue.
B To explore sustainable revenue models for states beyond the compensation period.
C To recommend complete reliance on central government grants.
D To advocate for an end to fiscal federalism.
2978.
Who are the members of this high-level committee?
A Only central government officials.
B Leading economists, tax experts, and representatives from the Centre and states.
C Only state government finance ministers.
D Representatives from international tax organizations.
2979.
Why has this committee been formed?
A Because the GST compensation period is being extended indefinitely.
B As the transition period for GST compensation to states is nearing its end.
C To address issues related to direct taxation.
D To simplify import-export procedures.
2980.
What is the primary purpose of the high-level committee constituted by the Centre on March 22, 2026?
A To increase GST rates across all goods.
B To review the Goods and Services Tax (GST) compensation cess mechanism.
C To abolish the Goods and Services Tax (GST).
D To introduce a new direct tax system.