UPSC Prelims 2018 · GS Paper I
Question 97: Economy and Social Development
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) ?
AnswerUPSC’s answer is (c).
Under the GST rate schedule as it stood in 2018, hulled cereal grains, cooked chicken eggs and newspapers (including those carrying advertisements) attracted a nil rate. Processed and canned fish was taxed. So items 1, 2 and 4 are exempt. Remember: GST exemptions cover basic food items and newspapers, while processed foods are taxed.
- 1. Hulled cereal grains were exempt.
- 2. Cooked chicken eggs were exempt.
- 3. Processed and canned fish was taxable.
- 4. Newspapers were exempt.
How you could have got this
- If you were sure statement 2 is correct, (a) goes: it leaves 2 out.
What you needed to know: Cooked chicken eggs were exempt.
- Then, if you were sure statement 3 is not correct, (b) and (d) go: each of them includes 3.
What you needed to know: Processed and canned fish was taxable.
Only (c) is left. You didn’t need statements 1 or 4.
Which options go is worked out from UPSC’s key and the options, not by a model.
Why each option is right or wrong
- (a) Incomplete: eggs and newspapers are also exempt.
- (b) Wrong: processed and canned fish is taxed.
- (c) Right: grains, eggs and newspapers.
- (d) Wrong: canned fish is taxed.
Worth knowing: GST exemptions and rates have been revised repeatedly since 2018; this reflects the schedule as it stood in the exam year.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2018, General Studies Paper I, Series A. The paper on upsc.gov.in.