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CA Final · Indirect Tax Laws · Charge of GST

Sundaram Traders, Chennai, is a registered person. It supplies goods within Tamil Nadu and Section 9(1) of the CGST Act is relevant. Which of the following intra-State supplies is expressly excluded from the levy of central tax under Section 9(1)?

Alcoholic liquor for human consumption is excluded from central tax under Section 9(1). Petroleum crude, diesel, petrol, natural gas and aviation turbine fuel become taxable only from a date the Government notifies, and e-commerce operator services are taxable with the operator paying the tax.

  1. ASupply of alcoholic liquor for human consumptionCorrect
  2. BSupply of aviation turbine fuel from the date of its notification
  3. CSupply of natural gas from the date of its notification
  4. DSupply of services by an e-commerce operator specified under Section 9(5)

Explanation

Section 9(1) levies CGST on all intra-State supplies of goods or services or both, except the supply of alcoholic liquor for human consumption (and un-denatured extra neutral alcohol or rectified spirit used to make such liquor). Petroleum products in Section 9(2) are brought into the levy from a notified date, so they are not excluded permanently. Section 9(5) services are taxable, only the payer changes.

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