Direction: Read the given passage carefully and answer the questions that follow.Goods and services….

Question

Direction: Read the given passage carefully and answer the questions that follow.Goods and services tax (GST) comes into effect from 1 July. There will be an impact on some basic expenses in the household consumption basket. The price difference will be bigger for SUVs (55% to 43%) compared to small cars (30% to 29%). While premium of term plans and non-life policies are taxed, only charges (mortality and AMC charges, etc) in other life policies attract GST. The yellow metal will become dearer as there will be 3% GST on gold and 5% on making charges. If you settle for a room that costs less than Rs 1,000, there will be no GST to pay. Then it rises progressively. Anything above Rs 5,000 will attract 28%. Hair oil prices will stay high due to 18% GST. But coconut oil being refined cooking oil, will be taxed at 5%. Taxation gap between economy and business class has increased with GST. While those travelling by local trains or in sleeper class are not affected, first-class and AC compartment travellers will pay more. Since telecom services will not get much input credit, you have to bear the burden of hiked rates. A non-AC eatery will only charge 12% GST. However, eating at a restaurant in a 5-star hotel will mean shelling out 28% in GST. Due to industry pressure, GST on garments priced below Rs 1,000 has been brought down from 12% to 5%. Reduction in GST for tickets up to Rs 100 will benefit single-screen cinemas in small towns. There are certain items that have been exempted from GST which include all unprocessed cereals like rice, wheat, etc., all unprocessed milk, vegetables, meat,fish, etc , education, healthcare (but not medicines), hotels, lodges with room rent less than Rs 1,000, kid&rsquo;s colouring /drawing books etc. Source: https://economictimes.indiatimes.com/wealth/spend/how-gst-will-impact-your-household-budget/articleshow/59190419.cmsWhat can be inferred from the difference in imposition of GST on different items?

EduGorilla · Accepted Answer

Direction: Read the given passage carefully and answer the questions that follow.Goods and services tax (GST) comes into effect from 1 July. There will be an impact on some basic expenses in the household consumption basket. The price difference will be bigger for SUVs (55% to 43%) compared to small cars (30% to 29%). While premium of term plans and non-life policies are taxed, only charges (mortality and AMC charges, etc) in other life policies attract GST. The yellow metal will become dearer as there will be 3% GST on gold and 5% on making charges. If you settle for a room that costs less than Rs 1,000, there will be no GST to pay. Then it rises progressively. Anything above Rs 5,000 will attract 28%. Hair oil prices will stay high due to 18% GST. But coconut oil being refined cooking oil, will be taxed at 5%. Taxation gap between economy and business class has increased with GST. While those travelling by local trains or in sleeper class are not affected, first-class and AC compartment travellers will pay more. Since telecom services will not get much input credit, you have to bear the burden of hiked rates. A non-AC eatery will only charge 12% GST. However, eating at a restaurant in a 5-star hotel will mean shelling out 28% in GST. Due to industry pressure, GST on garments priced below Rs 1,000 has been brought down from 12% to 5%. Reduction in GST for tickets up to Rs 100 will benefit single-screen cinemas in small towns. There are certain items that have been exempted from GST which include all unprocessed cereals like rice, wheat, etc., all unprocessed milk, vegetables, meat,fish, etc , education, healthcare (but not medicines), hotels, lodges with room rent less than Rs 1,000, kid&rsquo;s colouring /drawing books etc. Source: https://economictimes.indiatimes.com/wealth/spend/how-gst-will-impact-your-household-budget/articleshow/59190419.cmsWhat can be inferred from the difference in imposition of GST on different items?

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Answer/ Explanation

Direction: Read the given passage carefully and answer the questions that follow.Goods and services….

Options :-

Answer/ Explanation

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