Module: General Practice
Q14: Consider the following regarding the Goods and Services Tax (GST) Compensation Cess:
Assertion (A): The Budget 2026-27 confirms that the GST Compensation Cess will continue to be levied on luxury and demerit goods beyond March 2026.
Reason (R): The principal amount of the back-to-back loans taken during the COVID-19 period has been fully repaid, but the cess is now being repurposed to fund the "Green Energy Transition."
Reason (R): The principal amount of the back-to-back loans taken during the COVID-19 period has been fully repaid, but the cess is now being repurposed to fund the "Green Energy Transition."
✅ Correct Answer: C
Assertion is True: The GST Compensation Cess is indeed continuing beyond March 2026.
Reason is False: The Cess is not being repurposed for Green Energy yet.
The Union Budget 2026-27 clarifies it is continuing solely because the repayment of the interest and principal on the COVID-era borrowing is scheduled to go on until at least March 2027 or 2028.
Reason is False: The Cess is not being repurposed for Green Energy yet.
The Union Budget 2026-27 clarifies it is continuing solely because the repayment of the interest and principal on the COVID-era borrowing is scheduled to go on until at least March 2027 or 2028.