Ten MCQs on current International and national events - 193

PRERNA FOR IAS

(ASSOCIATE OF SAMKALP)

A-Category MCQs -193

Q1. GST Reform and Decriminalisation

With reference to the proposed reform concerning arrest powers under GST, consider the following statements:

1. Section 69 of the CGST Act presently permits authorised arrests for specified serious offences.
2. Removal of GST-specific arrest powers would necessarily mean that deliberate tax fraud could never attract criminal prosecution.
3. A trust-based tax regime can distinguish between genuine commercial disputes and deliberate fraud.
4. Decriminalisation and effective tax enforcement are not necessarily contradictory objectives.

Which of the statements given above are correct?

(a) 1, 2 and 3 only
(b) 1, 3 and 4 only
(c) 2 and 4 only
(d) 1, 2, 3 and 4

Correct Answer: (b) 1, 3 and 4 only

Explanation: The supplied Indian Express summary says the government is considering removing arrest powers from the GST framework. At present, Section 69 permits authorised arrests for specified serious offences such as fraudulent invoices and wrongful input-tax-credit claims. The summary also notes that serious deceit could still be prosecuted through general criminal law. Therefore, Statement 2 is incorrect. Hidden trap: decriminalisation does not mean absence of accountability. A mature tax system can encourage voluntary compliance and ease of doing business while retaining strong sanctions against intentional fraud.

Q2. R&D and India's Strategic Autonomy

Consider the following statements:

1. Higher R&D expenditure can contribute to productivity-driven economic growth.
2. Stronger university-industry linkages can assist technological innovation.
3. Physical infrastructure alone is sufficient to achieve technological self-reliance.
4. Domestic technological capability can reduce dependence on strategic imports.

Which of the statements given above are correct?

(a) 1, 2 and 4 only
(b) 1 and 3 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4

Correct Answer: (a) 1, 2 and 4 only