UPSC Prelims 2018 GS Paper I · Q97 of 100 Economy medium

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 (Goods and Services Tax) ?

  1. (a) 1 only
  2. (b) 2 and 3 only
  3. (c) 1, 2 and 4 only ✓ UPSC's answer
  4. (d) 1, 2, 3 and 4

Why the answer is (c)

• Under GST, unbranded hulled cereal grains (1), fresh or cooked eggs (2) and newspapers, including those with advertising (4), are exempt (nil rate).

• Processed and canned fish (3) attracts GST at 5% (12% if branded/prepared), so it is not exempt.

• Exemptions cover basic foods and print media to keep essentials affordable.

• Hence 1, 2 and 4 only, option (c).

Why the other options are wrong

(a) 1 only
Eggs and newspapers are also exempt.
(b) 2 and 3 only
Canned fish is taxed; hulled cereals and newspapers are exempt.
(d) 1, 2, 3 and 4
Processed and canned fish attracts GST.

Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2018, held on 3 June 2018. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.

Reading the answer is not the same as getting it right under a clock. Practise this question with UPSC's negative marking, and anything you miss goes into an error notebook until you get it right twice.

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