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

Which of the following is correct about the levy of central tax on petroleum crude, high speed diesel, motor spirit (petrol), natural gas and aviation turbine fuel under the CGST Act?

Central tax on petroleum crude, high speed diesel, petrol, natural gas and aviation turbine fuel applies only from a date the Government notifies on the Council's recommendations. It is a deferred levy, not a permanent exclusion, and it does not apply from commencement of the Act.

  1. ACentral tax is levied on them from the date the Act commenced
  2. BCentral tax on them is permanently excluded from levy
  3. CCentral tax on them is levied from a date notified by the Government on the Council's recommendationCorrect
  4. DCentral tax on them is levied only when supplied inter-State

Explanation

Section 9(2) provides that central tax on these specified goods is levied with effect from a date notified by the Government on the Council's recommendations. It is a deferred levy, not an exclusion or an immediate levy.

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