(102-106) Road the following passage carefully and answer the questions given below.
Unveiling a mini-Budget of sorts in the middle of the financial year,the Goods and Services Tax Council has announced a reduction in the tax rates for over eighty five goods.The applicable indirect tax rates on consumer durables such as television sets,washing machines and refrigerators, along with a dozen other products,have been slashed from Twenty-eight per cent to eighteen per cent.The tax rate on environmentally friendly fuel cell vehicles has been reduced from twenty-eight per cent to twelve percent,and the compensation cess levied on them dropped. This leaves just about thirty-five products, including tobacco,automobiles and cement,in the highest tax slab of the GST structure.Rakhis without semi-precious stones,as well as sanitary napkins that attracted twelve per cent GST,have been exempted from the tax altogether.Several other products have been placed in lower tax slabs,including those from employment Intensive sectors such as carpets and handicrafts.On the services front,too,there are important tweaks and clarifications.Overall,Industry and consumers may consider these rate cuts,largely on products and services of mass use,as a stimulus to drive consumption ahead of the festive season. Whichever way one looks at it,the GST Council’s 28th meeting has significantly altered the course of the nearly 13-month-old tax regime.The actual impact of these changes on product prices and consumption demand will be visible soon,but the government’s confidence in such a rate reduction gambit indicates it is now comfortable with revenue yields from the GST.
Estimates of revenue losses from these rate cuts vary widely,but it’s too early to worry about the Impact on macro fiscal numbers.If implemented well,the revenue lost could be offset by higher consumption that may lead to more Investments over time.Moreover, improvements in compliance can be expected from the Council’s decision.to further simplify paperwork for small and medium enterprises.But there are two major concerns.First,40318 since the new rates are to kick in from July 27,companies may not have enough time to rework pricing strategies and replace existing market inventory,falling which they could face anti profiteering action.Second,members of the Council have for the first time questioned its functioning and alleged that not all of the changes and rate cuts were placed on the agenda.For a tricky tax that is still a work in progress,distrust between the Centre and the States would make further rationalisation difficult.Such friction must be avoided in a system in which the States have so far worked in tandem with the Centre.
102) Which of the following goods are exempted from GST?
A) Carpets
B) Cement
C) All Rakhis with precious stones
D) Sanitary napkins
103) What makes further rationalisation of GST system difficult?
A) Lack of compliance
B) Distrust between the Centre and the States
C) Complexity in tax structure
D) Anti-profiteering action
104) What is the consequence of starting new GST rates from July 27th ?
A) Companies may not have enough time to rework pricing strategies.
B) Revenue from the taxes will be decreased.
C) Simplified paper work for small and medium enterprises.
D) Reduced conflict between Centre and State.
105) The Goods and Services Tax Council has announced a reduction in the tax rates for over____ goods.
A) 32
B) 35
C) 85
D) 28
106) The tax rate on environmentally friendly fuel cell vehicles has been reduced to
A) 10%
B) 28%
C) 18%
D) 12%