UPSC Prelims 2018 – Question 97

UPSC Prelims 2018 – Question 97

UPSC Prelims Mock Test - ECONOMY 2

Here is Question No. 97 a part of our series on UPSC Prelims 2018

Q97. Consider the following items:

  1. Cereal grains hulled
  2. Chicken eggs cooked
  3. Fish processed and canned
  4. 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

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