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CMA Intermediate · Direct and Indirect Taxation · Charge of Tax including Reverse Charge

Under Section 9(1) of the CGST Act, 2017, central tax is levied on which of the following supplies?

Central tax under Section 9(1) is levied on all intra-State supplies of goods, services or both, except alcoholic liquor for human consumption. Inter-State supplies are covered by IGST, and services are not excluded, so the second option is correct.

  1. AAll inter-State supplies of goods or services or both
  2. BAll intra-State supplies of goods or services or both, except supply of alcoholic liquor for human consumptionCorrect
  3. COnly intra-State supplies of goods, and not services
  4. DAll intra-State supplies including alcoholic liquor for human consumption

Explanation

Section 9(1) levies central tax on all intra-State supplies of goods or services or both. The only carve-out in the sub-section is alcoholic liquor for human consumption (and the specified spirit used to make it). Inter-State supplies attract IGST under the IGST Act, so the first option is wrong.

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