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CA Intermediate · Taxation · GST in India - An Introduction

Which one of the following items is outside the GST levy by express constitutional or statutory position, so that GST is not leviable on it at all?

Alcoholic liquor for human consumption is outside GST. The Constitution (101st Amendment) and the CGST Act exclude it, so States continue to levy VAT and excise duty on it. Hotel services, software services and garments are all taxable supplies under GST.

  1. ASupply of services by a hotel
  2. BAlcoholic liquor for human consumptionCorrect
  3. CSupply of software services
  4. DSupply of readymade garments

Explanation

Alcoholic liquor for human consumption is outside GST; the States levy VAT and excise on it. The other items are ordinary supplies of goods or services and are taxed under GST, so they are wrong choices.

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