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Components of Goods and Services Tax

Identify the ...

Question

Identify the goods on which the government charges 0% indirect taxes.

A

Processed foods

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B

Cereal

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C

Milk

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D

Computers

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Solution

The correct option is C Milk
Indirect tax or goods and services tax is the same for the rich and poor. However, the Finance Ministry charges 0% indirect taxes on essential goods like grains, vegetables, milk, cereal, etc., and high taxes are charged on luxury items like cars, laptops, and air conditioners. This way, there is fairness in taxation.

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ECONOMICS

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Components of Goods and Services Tax

Standard IX Economics

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