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CA Intermediate · Taxation · Exemptions from GST

Sanjay runs a stall selling fresh, unbranded vegetables and fruits in Pune and also sells packed, branded cut-fruit boxes. Considering GST exemption for supply of goods, which of his supplies is exempt from GST?

Only the fresh unbranded vegetables sold loose are exempt from GST. Fresh produce is exempt when unprocessed, but branded, cut and packed fruit boxes are processed and branded goods, so they do not qualify. The seller being a retailer is irrelevant to the exemption.

  1. AFresh unbranded vegetables sold looseCorrect
  2. BBranded packed cut-fruit boxes
  3. CBoth, because both are agricultural produce
  4. DNeither, because he is a retailer

Explanation

Fresh vegetables and fruits that are unprocessed and sold loose and unbranded are exempt by notification. Cut and packed fruit in branded boxes is processed/branded, so the exemption does not apply. Retailer status does not remove the exemption.

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