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CMA Intermediate · Direct and Indirect Taxation · Levy and Collection of CGST and IGST

Section 9(1) of the CGST Act, 2017 levies central tax on all intra-State supplies of goods or services or both. Which of the following supplies is expressly excluded from this levy?

Alcoholic liquor for human consumption is expressly excluded from central tax under section 9(1). Petroleum products such as high speed diesel, natural gas and aviation turbine fuel are not excluded; their levy is merely deferred until a date notified by the Government under section 9(2).

  1. ASupply of alcoholic liquor for human consumptionCorrect
  2. BSupply of high speed diesel
  3. CSupply of natural gas
  4. DSupply of aviation turbine fuel

Explanation

Section 9(1) expressly excepts alcoholic liquor for human consumption, along with un-denatured extra neutral alcohol or rectified spirit used to make it. Section 9(2) does not exclude diesel, natural gas or aviation turbine fuel; it defers the levy of central tax on them to a date to be notified.

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