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CA Intermediate · Taxation · Charge of GST

Under the CGST Act, which of the following is correct about the levy of tax on supply of alcoholic liquor for human consumption?

Supply of alcoholic liquor for human consumption is outside GST and is taxed by States through VAT and excise. The CGST and IGST Acts do not levy tax on it, whether the supply is intra-State or inter-State and whether under forward or reverse charge.

  1. ACGST and SGST are levied at 18%
  2. BIt is outside the scope of GST; State VAT or excise appliesCorrect
  3. CIGST is levied only on inter-State supply
  4. DGST applies under reverse charge

Explanation

Alcoholic liquor for human consumption is outside GST under the Constitution and the Act, so GST is not levied on it. States tax it through VAT and excise. The other options wrongly bring it within GST.

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