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)?
Answer & explanation
Answer: (c) 1, 2 and 4 only
Hulled cereal grains, cooked eggs and newspapers are on the GST exemption list, but processed and canned fish is taxed at 12%. So items 1, 2 and 4 are exempt and item 3 is not.
- ✓ 1. 'Cereal grains hulled' (heading 1104) is in the list of goods exempt from GST in Notification 2/2017-Central Tax (Rate).
- ✓ 2. The exemption list covers birds' eggs, in shell, fresh, preserved or cooked (heading 0407), which includes chicken eggs.
- ✗ 3. Prepared or preserved fish (heading 1604) is in Schedule II of the GST rate notification, at 12%. Only fresh, chilled or frozen fish gets the lower rate or exemption.
- ✓ 4. Newspapers, journals and periodicals, whether or not illustrated or containing advertising material (heading 4902), are exempt.
Remember · GST exempts unprocessed staples: hulled cereal grains, eggs, newspapers. Canned or preserved fish is taxed (12% at launch).
Sources
- Notification No. 2/2017-Central Tax (Rate), 28 June 2017 (CBIC, Ministry of Finance): preamble ↗ “the Central Government, being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts intra-State supplies of goods … 1104 Cereal grains hulled 77. 1105 Flour, of potatoes [other than those put up in unit container and bearing a registered brand name] … 0407 Birds' eggs, in shell, fresh, preserved or cooked … 4902 Newspapers, journals and periodicals, whether or not illustrated or containing advertising material”
- Notification No. 1/2017-Integrated Tax (Rate), 28 June 2017 (CBIC, Ministry of Finance): Schedule II entry ↗ “1604 Prepared or preserved fish; caviar and caviar substitutes prepared from fish eggs”
Question and answer: UPSC's official GS Paper I (2018, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). ·