CBSE Class 10/Overview
Curriculum 2026–27
Practice
India Cluster· Domain Code TAX

Taxation & Public Finance — GST Framework, Fiscal Policy & Devolution

The Indian public finance and taxation architecture is structured around constitutional federalism, defining the fiscal powers and obligations of the Union and State governments under Part XII of the Constitution. Direct taxation, encompassing Corporate Income Tax and Personal Income Tax, is administered by the Central Board of Direct Taxes (CBDT), while indirect taxation underwent a historic structural overhaul with the rollout of the Goods and Services Tax (GST) under the 101st Constitutional Amendment Act in 2017. Intergovernmental revenue sharing is governed by the Finance Commission, a constitutional body constituted under Article 280 to determine vertical and horizontal tax devolution. Additionally, macroeconomic stability is safeguarded through fiscal management statutes like the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, which sets binding deficit targets and debt-to-GDP trajectories.

Prescribed Topics & Learning Modules

Public Sample Quizzes & Solved Questions

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Question 1GST Architecture & GST Council Framework
easy

Which Constitutional Amendment Act introduced the Goods and Services Tax (GST) regime in India, coming into nationwide effect on July 1, 2017?

Question 2Finance Commission & Fiscal Devolution
easy

Under which Article of the Constitution of India is the President empowered to constitute a Finance Commission every five years?

Question 3Fiscal Deficit, FRBM Act & Sovereign Debt
easy

Which fiscal metric is defined as the Gross Fiscal Deficit minus interest payments made by the government on accumulated past borrowings?

Question 4GST Architecture & GST Council Framework
medium

In the Goods and Services Tax (GST) Council constituted under Article 279A, what proportion of the total weighted voting power is held by the Central Government?

Question 5Finance Commission & Fiscal Devolution
medium

The 14th Finance Commission, chaired by Dr. Y. V. Reddy, recommended a historic increase in the share of States in the net proceeds of Union taxes (vertical devolution) to what percentage?

Question 6Fiscal Deficit, FRBM Act & Sovereign Debt
medium

The Fiscal Responsibility and Budget Management (FRBM) Act, which institutionalized statutory targets for deficit reduction and fiscal discipline in India, was enacted in which year?

Question 7GST Architecture & GST Council Framework
medium

Under Article 269A of the Indian Constitution, who levies and collects the Integrated Goods and Services Tax (IGST) on inter-state supply of goods and services?

Question 8Finance Commission & Fiscal Devolution
hard

The 15th Finance Commission chaired by N. K. Singh assigned the highest weightage (45%) in its horizontal tax devolution formula among States to which criterion?

Question 9Fiscal Deficit, FRBM Act & Sovereign Debt
hard

The N. K. Singh FRBM Review Committee (2017) recommended adopting a General Government Debt-to-GDP ratio as the primary fiscal anchor, targeting what combined ceiling percentage?

Question 10GST Architecture & GST Council Framework
hard

Under Article 279A of the Constitution, any decision of the GST Council requires a weighted majority of not less than what proportion of the weighted votes of members present and voting?

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