✅ Answer: B) 2 and 3 onlyStatement 1 is incorrect — GST did NOT replace ALL indirect taxes. Petroleum products, alcohol for human consumption, and stamp duty are outside GST. Statement 2 is correct — petroleum products are outside GST. Statement 3 is correct — GST Council decisions require 3/4 majority.

✅ Answer: C) Income TaxIncome tax is a direct tax — paid directly by the person on whom it is levied and cannot be shifted to others. GST, Customs Duty, and Excise Duty are indirect taxes — collected by an intermediary and passed on to the government.

✅ Answer: B) GSTThe 101st Constitutional Amendment Act, 2016 enabled the implementation of GST. It inserted Article 246A giving concurrent power to both Centre and States to levy GST. It also established the GST Council under Article 279A.

✅ Answer: C) 28%The highest GST rate is 28%, applicable to luxury and sin goods like cars, tobacco, aerated drinks, casinos, and betting. GST rates are: 0%, 5%, 12%, 18%, and 28%. Essential items like fresh vegetables, milk, and books are at 0%.

✅ Answer: A) 1988The Benami Transactions (Prohibition) Act was originally enacted in 1988. It was significantly amended in 2016 to make it more effective. Benami transactions are those where property is held in another person’s name to conceal the real owner’s identity and evade taxes.

✅ Answer: A) CBDTDirect taxes (income tax, corporate tax, capital gains tax) are administered by CBDT (Central Board of Direct Taxes) under the Ministry of Finance. Indirect taxes (GST, customs duty, excise duty) are administered by CBIC (Central Board of Indirect Taxes and Customs).

✅ Answer: C) GST is levied concurrently by both Centre and StatesGST is levied concurrently by both Centre (CGST) and States (SGST) on intra-state supply. For inter-state supply, IGST is levied by the Centre and shared with states. This concurrent power was given by the 101st Constitutional Amendment (Article 246A).

✅ Answer: C) 2002The Prevention of Money Laundering Act (PMLA) was enacted in 2002. It criminalises money laundering and provides for attachment and confiscation of property derived from money laundering. The Enforcement Directorate (ED) enforces PMLA.

✅ Answer: C) 22%In September 2019, the corporate tax rate for existing domestic companies was reduced from 30% to 22% (effective rate ~25.17% including surcharge and cess). New manufacturing companies set up after October 1, 2019 pay 15% (effective ~17.01%).

✅ Answer: C) Cascading effectThe cascading effect (tax on tax) is NOT a feature of GST — in fact, GST was introduced specifically to ELIMINATE the cascading effect. Under the old system, tax was levied on tax at each stage. GST’s Input Tax Credit mechanism ensures that tax is paid only on the value added at each stage.