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

Under the CGST Act, 2017, the central tax on the supply of petroleum crude, high speed diesel, motor spirit (petrol), natural gas and aviation turbine fuel is to be levied:

Central tax on petroleum crude, high speed diesel, petrol, natural gas and aviation turbine fuel is levied only from a date notified by the Government on the Council's recommendation, as section 9(2) of the CGST Act provides, not from the Act's commencement.

  1. AFrom the date of commencement of the Act, at a rate not exceeding 20%
  2. BFrom such date as may be notified by the Government on the recommendations of the CouncilCorrect
  3. COnly when the supplier opts for the composition scheme
  4. DOnly on inter-State supplies of these goods

Explanation

Section 9(2) of the CGST Act provides that central tax on these five specified petroleum products is levied from a date notified by the Government on the Council's recommendations. It is not levied automatically from commencement, and it is not tied to composition or to inter-State movement only.

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