Question

What has been kept under the purview of Goods and Services Tax (GST)?
1. Alcohol for human consumption
2. Electricity 
3. Petroleum Products
4. Ghee

Answer 1

Correct Answer - Option 4 : Ghee

The correct answer is Ghee.

• Exempted Supplies Under GST Exemption List
  • Goods like petroleum products, alcoholic drinks, and electricity are not taxed under GST.
  • The supply of goods to the SEZ that is Special Economic Zone or SEZ developer comes under the GST exemption list.
  • Supply of goods that come under the zero-rated list, which means the tax rate of the goods that are fixed at 0% come under the GST exemption list.
  • These goods include fresh vegetables, fresh milk, and so on.
• Exempted Goods In GST Exemption List
  • Food - Fruits and vegetables, cereals, meat and fish, potatoes and other edible tubers and roots, tender coconut, tea leaves, jaggery, coffee beans, ginger, turmeric, milk, curd, etc.
  • Raw materials - Silk waste, raw silk, raw jute fiber, unprocessed wool, handloom fabrics, cotton for khadi yarn, khadi, charcoal, and firewood.
  • Tools/Instruments - Shovels, spades, agricultural tools, handmade musical instruments, hearing aids, and tools used by physically challenged individuals.
  • Miscellaneous - Contraceptives, semen, human blood, vaccines, organic manure, earthen pots, beehives, live animals (except horses), maps, books, journals, newspapers, non-judicial stamps, kites, and pooja props.

 

• Goods and Services Tax (GST)
  • Officially known as The Constitution (One Hundred and First Amendment) Act, 2016, this amendment introduced a national Goods and Services Tax (GST) in India from 1 July 2017. 
  • Goods and Services Tax (GST) is an indirect tax (or consumption tax) used in India on the supply of goods and services.
  • It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes.
  •  it is collected from a point of consumption and not point of origin like previous taxes.
  • Goods and services are divided into five different tax slabs for collection of tax - 0%, 5%, 12%, 18% and 28%.
  • The GSTN software is developed by Infosys Technologies and the Information Technology network that provides the computing resources is maintained by the NIC.
  • GST Council is the governing body of GST having 33 members, out of which 2 members are off-center and 31 members are from 28 state and 3 Union territories with legislation.