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Question : ________ is/are an item for which both GST and central excise duty are applicable in India.

Option 1: Alcohol for human consumption

Option 2: Tobacco and tobacco products

Option 3: Petroleum products

Option 4: All the agricultural commodities


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Team Careers360 8th Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

Correct Answer: Tobacco and tobacco products


Solution : The correct option is Petroleum products.

In India, petroleum products are subject to both the goods and services tax and the government excise levy. 20% of the cost of fuel and 17.6% of the cost of diesel is the central excise charge. For petrol, the national government charges an excise duty of Rs 32.9 per litre, while for diesel, it is Rs 31.8 per litre. These levies make up around half of the retail price of gasoline and diesel. The sale and manufacture of petroleum products are subject to state and federal taxes, respectively.

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