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CS Executive · Tax Laws and Practice · Levy and Collection of GST

Under the IGST Act, 2017, the levy of integrated tax on inter-State supply of motor spirit (petrol) takes effect:

Integrated tax on inter-State supply of petrol is levied from a date the Government notifies on the GST Council's recommendation. Petrol is not permanently excluded like alcoholic liquor for human consumption; its levy is only postponed until that notification.

  1. AFrom a date notified by the Government on the Council's recommendationCorrect
  2. BAutomatically from the date the Act came into force
  3. COnly after the CGST Act is amended to impose a rate of forty per cent
  4. DNever, since petrol is excluded alongside alcoholic liquor

Explanation

The IGST Act provides that integrated tax on petroleum crude, high speed diesel, motor spirit, natural gas and aviation turbine fuel is levied from a notified date on the Council's recommendation. Petrol is not excluded like alcoholic liquor, so the last option is wrong. No amendment is needed, so the third option is wrong.

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