DART 06-08-26 - Questlink IAS

Economy

Q1. With reference to the Goods and Services Tax (GST) regime in India, consider the following statements:

Integrated Goods and Services Tax (IGST) is levied on inter-State supplies of goods and services, including imports.
A rise in import values due to depreciation of the Indian Rupee can lead to higher IGST collections even if the quantity of imports remains unchanged.
A sustained increase in GST collections driven by domestic production and broad-based consumption is considered more desirable than one driven mainly by inflation or higher import values.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(d) 1, 2 and 3

Ans: (d)

Explanation

Recent GST data showed stronger growth in import IGST collections than in domestic GST, highlighting the importance of broad-based domestic production and consumption for sustainable tax buoyancy.
Integrated Goods and Services Tax (IGST) is levied on inter-State supplies of goods and services as well as imports, ensuring seamless input tax credit across States. Hence, Statement 1 is correct.
Since IGST is levied on the assessable value of imported goods, depreciation of the Rupee increases the rupee value of imports, thereby increasing IGST collections even without a rise in import volume. Hence, Statement 2 is correct.
A healthy GST system should reflect growth in domestic manufacturing, services and consumption. Tax collections driven mainly by inflation or exchange-rate-induced increases in import values are less indicative of broad-based economic growth. Hence, Statement 3 is correct.

Hence, option (d) is correct.

Economy

Q2. Which one of the following best describes the term 'Merchant Discount Rate (MDR)' in the context of digital payment systems?

(a) A financial incentive provided by the Government to merchants for promoting digital payment transactions.

(b) A tax imposed by the Government on merchants for accepting payments through digital payment platforms.

(c) A fee charged by banks and payment service providers from merchants for processing and settling digital payment transactions.

(d) A charge collected by payment service providers from customers for making high-value UPI transactions.

Ans: (c)

Explanation

The Taxation and Other Laws (Amendment) Bill, 2026 proposes changes that may enable banks and payment system providers to levy Merchant Discount Rate (MDR) on certain UPI and RuPay debit card transactions.
Government incentive schemes support digital payments, but MDR is not a financial incentive paid to merchants.
MDR is not a Government tax; it is a commercial fee within the digital payment ecosystem.
Merchant Discount Rate (MDR) is a fee charged by banks and payment service providers from merchants to recover the costs of transaction processing, settlement and maintenance of digital payment infrastructure.
MDR is generally not charged directly to customers for making UPI or other digital payment transactions.

Hence, option (c) is correct.

Polity

Q3. 'X' was explaining the constitutional provisions relating to Money Bills under Article 110 of the Constitution of India. He stated that a Money Bill can be introduced only in the Lok Sabha, and that the Speaker of the Lok Sabha has the authority to certify whether a Bill is a Money Bill. 'Y' added that once a Bill is certified as a Money Bill, it must also be passed by the Rajya Sabha before being presented to the President, to which 'X' disagreed.

Based on the above, select the correct conclusion from the options given below:

(a) X is correct in his interpretation regarding both the introduction and passage of a Money Bill.

(b) Y is correct because every Bill must be passed by both Houses of Parliament.

(d) Neither X nor Y is correct.

Ans: (a)

Explanation

The Supreme Court (Number of Judges) Amendment Bill, 2026 was recently passed as a Money Bill, reviving the constitutional debate on the interpretation of Article 110 and the scope of the Speaker's certification.
Under Article 110, a Money Bill can be introduced only in the Lok Sabha and only on the recommendation of the President. Further, the Speaker of the Lok Sabha has the constitutional authority to certify whether a Bill is a Money Bill, and this certification determines the special legislative procedure applicable to the Bill. Hence, X's view is correct.
A Money Bill is not required to be passed by the Rajya Sabha. After being passed by the Lok Sabha, it is transmitted to the Rajya Sabha, which can only make recommendations within 14 days. The Lok Sabha may either accept or reject these recommendations. If the Rajya Sabha does not return the Bill within 14 days, it is deemed to have been passed by both Houses in the form originally passed by the Lok Sabha. Hence, Y's view is not correct.

Hence, option (a) is correct.

Governance

Q4. With reference to the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006, consider the following statements:

The implementation of the Act primarily rests with the State Governments and Union Territory Administrations.
The Ministry of Tribal Affairs prescribes a statutory time limit for disposal of forest rights claims.

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

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

Ans: (b)

Explanation

The Ministry of Tribal Affairs recently informed Parliament about the progress in the implementation of the Forest Rights Act, 2006, including the status of claims and responsibilities of different authorities.
Under the Forest Rights Act, 2006, the responsibility for implementing the provisions of the Act lies with the State Governments and Union Territory Administrations, while the Ministry of Tribal Affairs compiles progress reports received from them. Hence, Statement 1 is correct.
The Forest Rights Act, 2006 and the Rules made thereunder do not prescribe any statutory time limit for disposal of claims, and such information is not centrally maintained by the Ministry of Tribal Affairs. Hence, Statement 2 is not correct.

Hence, option (b) is correct.

Science & Tech

Q5. Consider the following statements:

Statement I:

Battery manufacturing has become a strategic priority for India's electric vehicle (EV) ecosystem.

Statement II:

Battery packs account for nearly 35–40% of the total cost of an electric vehicle.

Statement III:

Domestic manufacturing of Advanced Chemistry Cells (ACC) is expected to reduce EV costs, improve energy security and strengthen India's EV value chain.

Which one of the following is correct in respect of the above statements?

(a) Both Statement II and Statement III are correct and both of them explain Statement I.

(b) Both Statement II and Statement III are correct but only one of them explains Statement I.

(d) Neither Statement II nor Statement III is correct.

Ans: (a)

Explanation

India is strengthening its EV ecosystem by promoting domestic manufacturing of Advanced Chemistry Cell (ACC) batteries, as batteries constitute the most expensive component of electric vehicles and are critical for energy security and self-reliance.
Battery packs account for 35–40% of an EV's total cost, making them the single largest cost component. Reducing battery costs is therefore essential for improving EV affordability and accelerating adoption. Hence, Statement II is correct.
The PLI Scheme for ACC Battery Storage promotes domestic manufacturing of advanced battery cells to reduce import dependence, lower production costs, strengthen energy security, create employment and improve India's competitiveness in the global EV supply chain. Hence, Statement III is correct.

Both Statements II and III correctly explain why battery manufacturing has become a strategic priority for India's EV ecosystem.

Hence, option (a) is correct.