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)?

QUESTION

Medium

Economy

Prelims 2018

Consider the following items:

Cereal 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)?

Select an option to attempt

Explanation

Statement 1 is Correct: Cereal grains that are hulled (meaning the outer husk is removed, such as shelled or rolled grains) are exempted from GST under HSN code 1104, provided they are not sold in branded unit containers. This exemption ensures that basic food staples remain affordable.

Statement 2 is Correct: According to GST Council notifications (HSN 0407), birds' eggs in shell, whether fresh, preserved, or cooked, are specifically exempted from GST. This classification keeps basic protein sources outside the tax net.

Statement 3 is Incorrect: While fresh, chilled, or frozen fish is exempt from GST, fish that has been processed and canned (HSN 1604) is considered a value-added product. Such processed items are subject to GST (typically at a rate of 5%).

Statement 4 is Correct: Newspapers, journals, and periodicals (HSN 4902) are exempt from GST. The law explicitly states that this exemption applies whether or not they contain advertising material, ensuring the free and affordable flow of information.

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