The correct answer is: C. 5%, 12%, 18% and 28%.
The Goods and Services Tax (GST) is a comprehensive indirect tax levied on goods and services supplied in India. It is a destination-based tax, which means that the tax is levied at the place where the goods or services are consumed. The GST was introduced in India on July 1, 2017.
The GST council is a body constituted by the Central Government and the State Governments to oversee the implementation of the GST. The GST council has come out with a four-rate structure for the GST. The four rates are:
- 5%: This rate is applicable on essential items such as food grains, milk, and medicines.
- 12%: This rate is applicable on common use items such as clothing, footwear, and kitchen utensils.
- 18%: This rate is applicable on goods and services that are not essential but are also not luxury items such as televisions, refrigerators, and cars.
- 28%: This rate is applicable on luxury items such as jewellery, high-end cars, and aircraft.
The GST council has also exempted certain items from the GST. These items include:
- Education
- Healthcare
- Postal services
- Financial services
- Insurance
- Electricity
- Water
- Natural gas
The GST is a major reform in the Indian indirect tax system. It is expected to simplify the tax system, reduce the cost of doing business, and boost economic growth.