Here is Question No. 97 a part of our series on UPSC Prelims 2018
Q97. Consider the following items:
Cereal grains hulled
Chicken eggs cooked
Fish processed and canned
Newspapers containing advertising material
Which of the above items is/are exempted under GST (Good and Services Tax)? (a) 1 only (b) 2 and 3 only (c) 1, 2 and 4 only (d) 1, 2, 3 and 4
Answer:
Goods and Services Tax was introduced in 2017 as a destination-based indirect tax. The Constitution was amended under the 101st Constitutional Amendment Act to insert Article 246A and Article 269A among other changes to facilitate the GST.
Statement 1 is correct: Previously GST council imposed 5% rate of GST on hulled grains. However, later on 11th June 2017, the rate of GST applicable on hulled grains is 0%. (Nil rate) falls under GST HSN code number 1104.
Statement 2 is correct: Chicken eggs cooked: 0% GST rate
Statement 3 is not correct: Fish processed and canned: 5% GST rate
Statement 4 is correct: Newspapers containing advertising material: 0% GST rate. However, ads attract 5% GST, not the newspapers publishing them