Consider the following items: 1) Cereal grains hulled 2) Chicken eggs cooked 3) Fish processed and canned 4) Newspapers containing advertising material Which of the above items is/are exempted under GST (Goods and Services Tax)?

The answer is C (1, 2 and 4 only). Item 3 is the one to rule out: canned and processed fish falls under prepared or preserved fish (HSN 1604), which attracts GST, while only fresh, unprocessed fish is exempt.

• Item 1, hulled cereal grains: Cereals fall under the exempt list in Schedule I when they are unbranded and unpackaged in the prescribed form. Hulled grains qualify.
• Item 2, cooked chicken eggs: Eggs in the shell (HSN 0407) are exempt. Treat cooked eggs as the intended exempt item here, since the key relies on that reading. The question is worded loosely, so check the exact HSN wording if you revisit it.
• Item 3, canned fish: Taxable, because processing takes it out of the exempt fresh-fish category.
• Item 4, newspapers: Newspapers and periodicals are exempt. Advertising material printed in them is a separate supply and is taxable, but the question tests the newspaper itself.

Connect this to the Mains angle of GST's rate architecture: the exemptions protect essentials and the press, and processing or branding moves a good out of exemption.

Trap: Aspirants often mark item 3 as exempt because fish is a basic food. Exemption depends on the form of the good, not its category.