Practice English Questions (Reading Comprehension) Set-19:
Practice English Questions for upcoming Bank PO and Clerk Exams were given below, candidates those who are preparing for the examination can use this question.
Directions (Q.1-10): Read the following passage carefully and answer the questions given below it. Certain words have been printed in bold to help you locate them while answering some of the questions.
In a milestone for the Indian indirect tax structure, the Constitution (122ndAmendment) Bill, 2014 commonly known as the GST or Good& Services Tax Bill, was passed by the Lok Sabha on May 6. Indian industry compliments the finance minister and the Empowered Committee of stage finance ministers for successfully undertaking the challenging task of working out the modalities of the Bill and for steering it through the Lok Sabha.
One of the most critical reform measures for the Indian economy today, the GST has been eagerly anticipated by industry since 2007 when it was firstmooted as a progression of the Value-Added Tax. It has many advantages for the economy as a whole as well as for different sections of society, including consumers, manufacturers, traders, and the central and state governments. Bringing it to this stage was not an easy process and required long and intense discussions among the central and state governments as it represents a fundamental change to the way the federal taxation structure was laid out in the Constitution.
The Indian market is considered to be among the largest in the world, and as such offers huge opportunities for a demand-driven growth strategy. However, the current indirect tax regime includes multiple central, state and local taxes such as excise duty, service tax, central sales tax, octroi, value-added tax, entertainment tax, and purchase tax and so on, leading to different taxation structures in different states. The national market thus is fragmented and goods travelling from one part of the country to another face many hurdles at the state borders, making transportation costlier, delayed and inefficient.
The GST aims to replace multiple taxes on goods and services, except alcohol for human consumption. Petroleum products shall not be subject to levy of GST till notified at a future date on the recommendation of the GST Council.
Through GST, India would transition to a single unified market. Inter-state barriers to trade would bedismantled,leading to faster movement of goods across the country, with no long queues at state checkpoints. For domestic manufacturers, this would be a big boon as it would lower costs, reduce time taken to destination and ultimately greatly add to competitiveness of Indian manufactured goods. Such efficiency would also sharpen our edge in the global markets and facilitate higher exports.
GST will reduce the cost of compliance and litigation as also broadens the tax base. It would enable producers and traders up and down the supply chain to pay taxes only on the value added by them. With the availability ofseamless credit through the value chain, thecascading of taxes on cost of goods and services wouldobviated.In addition, since the GST would be placed on the IT infrastructure termed as the GST Network, tax administration could become more transparent and time-bound.
For state governments, the Integrated Goods and Services Tax (IGST) system as proposed means ease in tax collections. The IGST would be levied and collected on supplies in the course of inter-state trade by the Centre, and would then be allocated to the destination states. To protect the interest of the states, protect the interest of the states, provision has been made in the Bill to compensate for loss of revenues, if any, by the Centre, to the tune of 100% for the first three years, 75% for the fourth year, and 50% for the fifth year. We in CII believe that the GST introduction is the most important tax reform for the economy. Our expectation is that GST alone could add as much as 1.5-2 percentage points to the GDP rate of growth due course, placing India on track to attain double-digit growth rates in the medium term. Moreover, it would give huge impetus to manufacturing sector, which is the key option for creating the large number of jobs required by the country as its workforce expands by 10-12 million young people each year. Industry has been continuously engaging with the central and state governments to highlight these economic advantages over the years
1).What will be the effect(s) of replacing multiple taxes GST? Answer in the context of the passage.
a) It would enable producers and traders up and down the supply chain to pay taxes only on the value added them.
b) It will constrict the tax base.
c) It will lessen the cost of compliance and litigation
d) Only a) and c)
e) Only b) and c)
2).Why did the passage of the GST Bill take such a long time?
1. Because the central government did not want to displease the stage governments and lose their support.
2. Because the state governments did not want to lose a major source of their revenue.
3. Because the passing of the bill required a fundamental change in the federal taxation structure which required intense discussion among the central and the state government.
a) Only (2)
b) Only (1)
c) Only (3)
d) Only (1) and (2)
e) All (1), (2) and (3)
3).Which of the following statements regarding GST is/are true?
1. It will replace VAT.
2. It will benefit not only consumers, manufacturer and traders but also the central and the state governments.
3. It will not be levied on alcohol for human consumption and petroleum products.
a) All (1), (2) and (3)
b) Only (1) and (2)
c) Only (2) and (3)
d) Only (1) and (2)
e) Only (1)
4).What is/are the provisions in IGST system to protect the revenue loss, if any, of the state governments?
1. There is no provision for any revenue loss of the state governments.
2. The centre would compensate 100 per cent revenue loss for the first three years.
3. The Central would compensate three-fourths of the loss incurred to the states during the fourth year.
a) Only (2)
b) Only (3)
c) Only (1)
d) Only (2) and (3)
e) None of these
5).What does the author think about the implication of GST on India’s economy?
a) It will give huge impetus to the manufacturing sector
b) It will help create new job opportunities for young Indians
c) GST alone could add as much as 1.5-2 percentage points to the GDP rate of growth
d) GST will help India attain double-digit growth rates in the medium term.
e) All the above
Directions (Q.6-8): Choose the word/group of words which of MOST SIMILAR is meaning to the word/group of words printed in bold as used in the passage
Directions (Q.9-10): Choose the word/group of words which is MOST OPPOSITE in meaning of the word/group of words printed in bold as used in the passage
1). d) 2). b) 3). a) 4). d) 5). e) 6). c) 7). b) 8). d) 9). a) 10). e)
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