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CMA Intermediate · Direct and Indirect Taxation · Levy and Collection of CGST and IGST

Which of the following supplies is expressly excepted from the levy of CGST under Section 9(1), as that sub-section now reads?

Un-denatured extra neutral alcohol or rectified spirit used to manufacture alcoholic liquor for human consumption is excepted from CGST under Section 9(1). Petroleum products are different: their levy is deferred until a date the Government notifies on the Council's recommendation, not excepted outright.

  1. ASupply of high speed diesel within a State
  2. BSupply of un-denatured extra neutral alcohol used for manufacture of alcoholic liquor for human consumptionCorrect
  3. CSupply of natural gas within a State
  4. DSupply of aviation turbine fuel within a State

Explanation

Section 9(1) excepts alcoholic liquor for human consumption and un-denatured extra neutral alcohol or rectified spirit used for making such liquor. The petroleum products are not excepted in 9(1); under 9(2) tax on them applies from a date to be notified.

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