General Knowledge

Economy

Medium

The main purpose of the Goods and Services Tax (GST) compensation fund is

To provide funding for infrastructure development.

To provide relief to taxpayers who have paid excess tax.

To support the development of micro, small and medium enterprises (MSMEs)

To compensate states for the loss of revenue due to the implementation of GST.

✅ Correct Option: 4

Option 1 -> The GST compensation fund is not meant for infrastructure development, which has separate funding mechanisms.

Option 2 -> Excess tax paid by taxpayers is handled through the GST refund process, not through the compensation fund.

Option 3 -> While MSME support is important, the GST compensation fund serves a different specific purpose related to state revenues.

Option 4 -> The fund was specifically created to compensate states for revenue shortfall during the GST transition period, ensuring they receive guaranteed 14% annual revenue growth.

Hence, Option 4: To compensate states for the loss of revenue due to the implementation of GST -> The GST Compensation Fund was established under the GST (Compensation to States) Act, 2017 to compensate states for any revenue loss arising from GST implementation for a period of five years, funded by a compensation cess on certain goods -> correct

2025: 23 May Shift 1

The Government of India, through Indian Strategic Petroleum Reserve Limited (ISPRL) has set up Strategic Petroleum Reserves (SPR) at which of the following locations with a capacity of 5.33 MMT?

(A) Padur

(B) Digboi

(D) Visakhapatnam

Choose the correct answer from the options given below:

2026: 19 May Shift 1

Arrange the following policies of the Govt. of India in appropriate sequence as year of launching.

(A) National Logistics Policy

(B) Start up India

(D) PM Gatishakti National Master Plan

(E) Steel Scrap Recycling Policy

Choose the correct answer from the options given below:

2026: 12 May Shift 2

India has jointly inaugurated the Maitree Super Thermal Power Plant with which of the following neighbouring country?

2025: 3 June Shift 1

Arrange the following in a sequence starting with the earliest to later:

(A) Pardhan Mantari Matsya Sampada Yojana.

(B) Pradhan Mantri Fasal Bima Yojna.

(D) National Co-operative Development Corporation.

Choose the correct answer from the options given below:

2022: 24 Aug Shift 1

Among the options given below three have similarities. Find the word that does not match with others.

2022: 26 Aug Shift 1

Indian maintained _______ rank on an annual World Competitiveness Index Compiled by The Institute for Management Development (IMD).

The main purpose of the Goods and Services Tax (GST) compensation fund is

Solution

Related questions:

Keyboard Shortcuts

CUET General Test Past Year Questions (Topic-Wise)