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CA Intermediate · Taxation · Exemptions from GST

Sharma Transport, a goods transport agency (GTA), transports agricultural produce (fresh fruits) from a farm in Punjab to a mandi for Rs 12,000, and in the same month transports office furniture of a company for Rs 25,000 on the same GTA basis. Which is exempt?

Only the transport of fresh fruits is exempt. Road transport of agricultural produce by a goods transport agency is covered by exemption, whereas carriage of office furniture is not an exempt category and remains taxable.

  1. ABoth transports
  2. BNeither transport
  3. COnly the furniture transport
  4. DOnly the transport of fresh fruitsCorrect

Explanation

Services by way of transportation of agricultural produce by road by a goods transport agency are exempt. Fresh fruits are agricultural produce. Transport of office furniture is not an exempt category, so it is taxable subject to the applicable GTA provisions.

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