Which one of the following statements regarding GST is not correct?
Amendment 115 to the Constitution of India kept alcohol for human use and five petroleum products outside the ambit of GST.
Amendment 122 to the Constitution of India kept only alcohol for human use outside the ambit of GST.
Precious metals are taxed at a rate of 1% under GST.
Unworked diamond is taxed at a rate of 0.25%.
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC CDS-1 – 2024
– Statement A refers to the 115th Constitution Amendment Bill, which was a previous attempt at introducing GST but did not pass. While it proposed keeping alcohol and certain petroleum products outside GST, referring to it as an enacted amendment is incorrect.
– Statement B refers to the 122nd Constitution Amendment Bill, which became the 101st Constitution Amendment Act, 2016, enabling GST. This Act explicitly kept alcohol for human consumption outside the ambit of GST. It also provided for five petroleum products (petrol, diesel, natural gas, ATF, crude oil) to be included in GST at a future date decided by the GST Council, effectively keeping them outside for the time being. So, stating *only* alcohol was kept out is incorrect.
– Statement D is correct. Unworked diamonds (rough diamonds) are taxed at a low rate of 0.25% under GST.