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CA Intermediate · Taxation · GST in India - An Introduction

Raman Pvt Ltd, a manufacturer in Indore, pays GST on its output sales and takes credit of GST paid on inputs. Consider these statements: (I) Alcohol for human consumption is outside the GST levy by constitutional provision. (II) Petroleum crude, high speed diesel, motor spirit, natural gas and aviation turbine fuel are outside GST until the GST Council recommends a date. (III) Electricity is taxed under GST at a concessional rate. Which statements are correct?

Statements I and II are correct. Alcohol for human consumption is outside GST by constitutional provision, and crude petroleum, diesel, petrol, natural gas and aviation turbine fuel remain outside until the GST Council recommends a date. Electricity is not taxed under GST at a concessional rate, so III is wrong.

  1. AI and II onlyCorrect
  2. BII and III only
  3. CI and III only
  4. DI, II and III

Explanation

Alcohol for human consumption is outside GST (Article 366(12A)) and remains with State VAT and excise. The five petroleum products are outside GST until the Council recommends otherwise. Electricity is not taxed under GST; it is outside the levy (not a supply of goods/services liable to GST, being exempt), so statement III is wrong. Thus I and II only.

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