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GS Paper IUPSC Prelims 2011
Fiscal Policy & Public Finance
Question No. 217Interactive Test Mode
00:00
+2-0.66

Q217. Which one of the following is not a feature of “Value Added Tax”?

Which one of the following is not a feature of “Value Added Tax”?

Select the correct option below (or cross out options to eliminate)
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Official Answer Key & Detailed Solution

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Official UPSC Answer KeyUPSC Prelims 2011 • Indian Economy

Correct Answer: Option (D) — It is basically subject of the Central Government and the State Governments are only a facilitator for its successful implementation

Concept & Option Breakdown

Standard Reference Verified
  • State VAT was an indirect tax under the exclusive legislative domain of State Governments (Entry 54 of the State List under the Seventh Schedule), while CENVAT was under the Union. States were autonomous taxing authorities rather than mere facilitators.
  • Statements (a), (b), and (c) accurately describe the multi-stage, input-tax-credit-based, consumption-borne nature of VAT.
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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2011 (Q217)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Fiscal Policy & Public Finance
Official Answer KeyOption (D) — It is basically subject of the Central Government and the State Governments are only a facilitator for its successful implementation

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Frequently Asked Questions — UPSC Prelims 2011 Q217

What is the official answer for UPSC Prelims 2011 GS Paper I Question 217 (Indian Economy)?

The official UPSC answer key for this 2011 Indian Economy (Fiscal Policy & Public Finance) question is Option (D): "It is basically subject of the Central Government and the State Governments are only a facilitator for its successful implementation". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2011 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Fiscal Policy & Public Finance". You can explore all repeated questions from Fiscal Policy & Public Finance in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Fiscal Policy & Public Finance UPSC Prelims question using option elimination?

To solve Fiscal Policy & Public Finance questions in UPSC Prelims, identify extreme modifiers, verify core NCERT conceptual definitions, and eliminate mutually contradictory statement pairs before locking your final option.

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