Question 92 from UPSC CSE 2018 - Current Affairs

Question

Consider the following items:
1. Cereals 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 (Goods and Services Tax)?

IASCODEX · Accepted Answer

Correct Option: A. 1 only

Strategy: - Identify items explicitly exempt under GST, such as 'cereal grains hulled'.
- Exclude items with value addition, like 'chicken eggs cooked' and 'fish processed and canned', as they are subject to GST.
- Note that newspapers with advertising material are taxed on advertisement revenue, not the product itself, making them not entirely exempt.
- Conclude that only 'cereal grains hulled' fully aligns with the GST exemption.

Key Info: Under the Indian GST regime, the exemption list is maintained for essential commodities and basic raw foods.

- 'Cereal grains hulled' refer to unprocessed grains with the outer husk removed; these are explicitly exempt from GST as per the GST rate schedule, recognizing their staple nature in Indian diets.

- 'Chicken eggs cooked' are not exempt; only fresh, unprocessed eggs are exempt. Processing, including cooking, subjects the item to GST as it is considered a value-added foodservice.

- 'Fish processed and canned' also do not receive exemption. Fresh and chilled fish are exempt, but any processing--such as smoking, canning, or flavoring--makes the product taxable under GST, being classified under processed foods.

- 'Newspapers containing advertising material': While sale of newspapers is primarily exempt from GST, revenue from advertisements published within them is not; this portion attracts GST (currently 5%), as clarified by the GST council and government circulars. The underlying logic is to tax the service of advertising separately, even when attached to an otherwise exempt newspaper.

The GST Council regularly updates exemption and rate lists, but core, unprocessed agricultural and food items often remain exempt to lessen burden on the general population, while processed, value-added, or service components (like printed advertisements) are usually included within taxable categories.

IASCODEX · Answer

Option B: 2 and 3 only

IASCODEX · Answer

Option C: 1, 2, and 4 only

IASCODEX · Answer

Option D: 1, 2, 3, and 4

Consider the following items: Cereals grains hulled Chicken eggs cooked Fish processed and canned Newspapers containing advertising material Which of the above items is/are exempted under GST (Goods and Services Tax)?

Consider the following items:

Cereals grains hulled

Chicken eggs cooked

Fish processed and canned

Newspapers containing advertising material
Which of the above items is/are exempted under GST (Goods and Services Tax)?