Question

Match the following.

i) Milk, cereal, and eggs	a) 28% GST
ii) Petrol, electricity, and liquor	b) Not in GST
iii) Luxury items	c) 0% GST

• A. i-a, ii-b, iii-c
• B. i-b, ii-a, iii-c
• C. i-c, ii-a, iii-b
• D. i-c, ii-b, iii-a

Answer 1

The correct option is D i-c, ii-b, iii-a

The same tax rate is not applied to all items included under GST. They are arranged under different tax slabs: 5%, 12%, 18%, and 28%. Goods that come under essential services and daily consumption are charged 0% GST. However, there are certain goods and services on which GST is not applicable. These are diesel, petrol, natural gas, aviation fuel, electricity, and liquor. They are taxed as per the earlier indirect tax system.