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     EduGorilla 
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    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’s colouring /drawing books etc.

    Source: https://economictimes.indiatimes.com/wealth/spend/how-gst-will-impact-your-household-budget/articleshow/59190419.cms
    Which of the following can be inferred from the passage?

    Options :-

    1. The increased usage of telecom services is responsible for increased taxes.
    2. The presence of so many telecom service providers increases the competition and hence GST will add fuel to the fire.
    3. GST has reduced profits for businessmen as well and the consumers need to pay for it.
    4. Certain services will be provided at a lower cost than before because of GST.
    5. The telecom services will have to renew offers and a lot of changes in the infrastructure is needed as merging of companies will take place.
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Reply To: Direction: Read the given passage carefully and answer the questions that follow.Goods and services….
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