Question

GST of 5% is charged for items sold at a shop. Ravi bought tea for 304. How much GST was charged for the tea? ​

Answer 1

Answer:

Tea will be taxed at 5 percent as India finalized rates for its inaugural goods and services tax (GST) effective July 1. Rates were set last week for more than 500 services and 1,200 categories of goods following 10 years of negotiations. The intent is to streamline the existing tax structure and capture more tax dollars by reducing tax evasive cash payments along the supply chain. Products fall into one of five categories with effective tax rates of zero for food grains, fresh vegetables, milk, newspapers, and hearing ads. Tea is included in the category of mass consumption items such as coffee, sugar, infant formula, medicines, coal, and renewal energy devices. The standard rate is 12 percent. Items like butter, fruit juice, candles, leather goods, bicycles, utensils and most household goods are grouped at the low end with items such as ice cream, petroleum jelly and toothpaste at the 18 percent upper end of the standard rate