1.Consider the following statements regarding the GST Composition Scheme:

1. It is simple and easy scheme for direct tax payers.

2. This scheme can be opted by all tax payers whose turnover is less than ₹1.5 Crore.

Which of the statements given above is/are not correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer (c) Explanation

✓ GST is an indirect tax.

✓ GST Composition Scheme is a simple and easy scheme under GST for taxpayers. Small taxpayers can get rid of tedious GST formalities and pay GST at a fixed rate of turnover.

✓ This scheme can be opted by Businesses dealing only in goods whose turnover is less than Rs. 1.5 crore. (Earlier it was ₹75 lakh and 23rd GST Council meeting has increased it to ₹1.5 lakh crore.)

✓ A taxpayer opting for composition scheme has to pay tax at a nominal rate. Under the scheme, small businesses, manufacturers and restaurants will be subject to a GST rate of 0.5%, 1% and 2.5% respectively on turnover.

✓ Businesses opting for the scheme will see a lesser compliance burden as they will have

to file returns only once in a quarter.

2.Consider the following statements:

1. Foreign direct investment (FDI) upto 100% is permitted in Railway infrastructure under automatic route.

2. FDI upto 49% is permitted in defence sector under automatic route.

3. FDI upto 51% is permitted in insurance sector under automatic route.

Which of the statements given above is/are not correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 3 only

(d) 1 and 3 only

Answer (c) Explanation

✓ Foreign direct investment (FDI) upto 100% is permitted in Railway infrastructure under automatic route. (FDI is prohibited in Railway operations)

✓ In defence, foreign investment up to 49 per cent is permitted under the automatic route, and foreign investment beyond 49 per cent and up to 100 per cent is permitted through government approval.

✓ At present, 49 per cent foreign investment is allowed in the insurance sector under automatic route (that encompasses insurance broking, insurance companies, third- party administrators, surveyors and loss assessors as defined by the Department of Industrial Policy and Promotion).

3.Which of the following statements regarding the convertibility of the Indian Rupee is correct?

(a) Convertibility of Rupee implies freely permitting the conversion of rupee to other currencies and vice versa

(b) Currently Indian Rupee has current account convertibility

(c) SS Tarapore committee recommended the full convertibility of Indian Rupee

(d) All the statements given above are correct

Answer (d) Explanation

✓ Facility of exchanging domestic currency for foreign currency and vice-versa at market determined exchange rate without restriction is called convertibility.

✓ Presently Indian Rupee is partially convertible and is limited only to the Current Account.

✓ S.S. Tarapore committee constituted in both 1996 as well as in 2006 advocated the

implementation of convertibility in Capital Account too.

4.Global Innovation Index is published by:

(a) World Economic Forum

(b) World Intellectual Property Organisation

(c) International Monetary Fund

(d) Global Innovation Institute (GlnI)

Answer (b) Explanation

In the Global Innovation Index 2017, co-authored by Cornell University, INSEAD and World Intellectual Property Organisation (WIPO), India has moved up 6 places to reach 60th place among 130 countries emerging as the top-ranked economy in Central and South Asia.

5.Which one of the following is the correct sequence (increasing order) of the shares of the given currencies in the SDR basket?

(a) US Dollar, Japanese Yen, Chinese Yuan, Euro

(b) US Dollar, Chinese Renminbi, Euro, Japanese Yen

(c) Japanese Yen, Euro, Chinese Renminbi, US Dollar

(d) Japanese Yen, Chinese Renminbi, Euro, US Dollar

Answer (d) Explanation

The respective weights of the US Dollar, Euro, Chinese Renminbi, Japanese Yen and Pound sterling are 41.73%. 30.93%, 10.92%, 8.33% and 8.09%.