CA Intermediate · Taxation · Exemptions from GST
Kisan Agro Traders of Nashik supplies the following in a month: fresh vegetables (unbranded, not processed) Rs 2,00,000; wheat flour packed and sold under a registered brand name Rs 1,50,000; and fresh milk Rs 80,000. Ignoring registration threshold issues, what is the value of supplies on which GST is not payable due to exemption?
The exempt supplies are fresh unprocessed vegetables and fresh milk, together Rs 2,80,000. Wheat flour sold under a registered brand name in a pre-packed form is not exempt and attracts GST, so it is excluded from the exempt total.
- ARs 2,80,000Correct
- BRs 4,30,000
- CRs 2,00,000
- DRs 2,30,000
Explanation
Fresh vegetables (Rs 2,00,000) and fresh milk (Rs 80,000) are exempt: total Rs 2,80,000. Branded packed flour is taxable. Rs 4,30,000 wrongly includes the branded flour, and Rs 2,00,000 omits the milk.
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