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)?

[UPSC Civil Services Exam – 2018 Prelims]

(a) 1 only

(b) 2 and 3 only

(c) 1, 2 and 4 only

(d) 1, 2, 3 and 4

Answer: (c)        

Explanation:

• Initially, the GST council implemented a 5% GST rate on hulled grains. However, on 11th June 2017, during the introduction of GST in July 2017, the council revised the rate to 0% (nil rate) for hulled grains falling under GST HSN code chapter 1104.
• Cooked eggs are exempted from paying GST, meaning there is no GST rate applicable to them.
• Fish, crustaceans, molluscs, and other aquatic invertebrates in processed, cured, or frozen state are subject to a 5% GST rate.
• Newspapers containing advertising material are taxed at a 0% GST rate. However, it’s important to note that the advertisements themselves attract a 5% GST, while the newspapers publishing them are exempted from GST.
• Newspapers, whether with or without advertisements, are exempted from GST.