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  9. Q163

RBI Grade B Officer (General / DEPR / DSIM) 2023 · Question 163 of 260

Each question given below consists of a statement, followed by two arguments numbered I and II. You have to decide which of the arguments is a 'strong' argument and which is a 'weak' argument. Statement: Should the demand of exporters, who are facing liquidity challenges, for extending GST (Goods and Services Tax) exemption on freight be met? Arguments: I. Yes, because GST on export freight is revenue-neutral as exporters can claim a refund after making the payment, so extending the exemption will improve exporters' liquidity. II. Yes, because GST on export freight is levied by the central government, which has the discretionary powers to provide exemption from the tax.

Logical Reasoning

  1. A1. Only argument I is strongCorrect
  2. B2. Only argument II is strong
  3. C3. Either I or II is strong
  4. D4. Neither I nor II is strong
  5. E5. Both I and II are strong

Answer: A. 1. Only argument I is strong

Explanation

The statement talks about extending GST exemption on export freight. I is a strong argument as it tells us how extending the exemption will not hurt government revenues while addressing exporters' liquidity concerns. II is not a strong argument as it only mentions that the central government has the right to decide on providing exemptions from GST. It does not provide a reason supporting the extension of exemption.

Source: RBI Grade B 2023 – Phase 1 recollected questions with answer key (EduTap compilation) · memory-based

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