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CA Final · Indirect Tax Laws · Charge of GST

Sunrise Distillers Pvt Ltd of Pune supplies the following within Maharashtra: (i) country liquor meant for human consumption, (ii) rectified spirit sold to another distillery for manufacturing alcoholic liquor for human consumption, (iii) packaged sanitiser. Under the charging provision of the CGST Act, for which of these is central tax NOT leviable?

Central tax is not leviable on the liquor for human consumption or on the rectified spirit supplied for manufacturing such liquor, because section 9(1) excludes both. The sanitiser is an ordinary intra-State supply of goods and remains taxable.

  1. AOnly (i)
  2. BOnly (i) and (ii)Correct
  3. COnly (ii) and (iii)
  4. DOnly (iii)

Explanation

Section 9(1) levies CGST on all intra-State supplies except alcoholic liquor for human consumption and un-denatured extra neutral alcohol or rectified spirit used for manufacture of alcoholic liquor for human consumption. So (i) and (ii) are outside the levy, while the sanitiser is taxable. Option 'Only (i)' wrongly ignores the extension to rectified spirit used for making liquor.

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