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CS Executive · Tax Laws and Practice · Levy and Collection of GST

Regarding petroleum crude, high speed diesel, motor spirit, natural gas and aviation turbine fuel, the CGST Act, 2017 provides that central tax on their supply:

Central tax on petroleum crude, high speed diesel, petrol, natural gas and aviation turbine fuel applies from a date notified by the Government on the GST Council's recommendation. It is a deferred levy, not a permanent exemption and not tied to a fixed rate.

  1. AIs levied from a date notified by the Government on the Council's recommendationCorrect
  2. BIs permanently exempt from the Act's levy
  3. CIs levied at a flat rate of twenty per cent from the appointed day
  4. DIs levied only when the supply is inter-State

Explanation

Section 9(2) says central tax on these five goods is levied with effect from such date as the Government notifies on the Council's recommendations. It is a deferred levy, not a permanent exemption. The twenty per cent figure is only the ceiling for central tax rates, not a flat rate.

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