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CA Intermediate · Taxation · GST in India - An Introduction

Which one of the following items is outside the GST regime entirely as per the Constitution, i.e. GST cannot be levied on it?

Alcoholic liquor for human consumption is wholly outside GST and remains taxed by States through VAT and excise. The petroleum products listed, such as crude, natural gas and aviation turbine fuel, are within the definition of goods, with GST on them applying only from a notified date.

  1. AAlcoholic liquor for human consumptionCorrect
  2. BNatural gas
  3. CAviation turbine fuel
  4. DPetroleum crude

Explanation

Alcoholic liquor for human consumption is outside GST and taxed by States under VAT/excise. Petroleum crude, high speed diesel, motor spirit, natural gas and aviation turbine fuel are within the GST definition of goods, but GST on them is leviable from a date notified on the Council's recommendation. So natural gas and others are not permanently outside.

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