Question

Which of the following will not comes under the proposed GST in India?

• A. Agricultural products
• B. Handicrafts
• C. Gems and Jewelleries
• D. Petroleum products

Answer 1

Answer:

D. Petroleum products

Read Explanation:

• Petroleum products are kept outside the GST regime in India.

• These include:

• Crude oil

• Natural gas

• Aviation turbine fuel (ATF)

• Petrol

• Diesel

• These petroleum products continue to attract the earlier taxes like excise duty from the Centre and sales tax/VAT from states. This exclusion was a compromise to get states on board with GST implementation, as petroleum products are major revenue sources for state governments.

• The other options that are included under GST are:

• Agricultural products (with some exemptions for unprocessed foods)

• Handicrafts

• Gems and Jewelleries

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