National Affairs MCQs

161.

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.

162.

What is the deadline for the committee to submit its report?

A Three months

B Six months

C One year

D Two years

163.

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.

164.

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.

165.

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.

166.

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.

167.

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.

168.

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.

169.

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.

170.

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.

National Current Affairs MCQs