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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Supply under GST

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

Central tax on petroleum crude, high speed diesel, petrol, natural gas and aviation turbine fuel is levied only from a date notified by the Government on the recommendations of the Council. It does not apply automatically from commencement.

  1. AIt is levied from the date of the GST commencement automatically
  2. BIt is permanently exempt by the statute
  3. CIt is levied with effect from such date as the Government notifies on the Council's recommendationsCorrect
  4. DIt is levied only on reverse charge basis

Explanation

The Act provides that central tax on these products applies from a date notified by the Government on the Council's recommendations. It is neither automatic nor a permanent statutory exemption.

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