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

Which statement about the levy of integrated tax under the IGST Act, 2017 is correct?

Integrated tax on petroleum crude, high speed diesel, petrol, natural gas and aviation turbine fuel is levied only from a date the Government notifies on the Council's recommendation. It is not automatic, and alcoholic liquor for human consumption is excluded from the levy.

  1. AIntegrated tax on petroleum crude, high speed diesel, petrol, natural gas and aviation turbine fuel applies from the date notified on the Council's recommendationCorrect
  2. BIntegrated tax on petrol applies automatically from the date the Act came into force
  3. CIntegrated tax on alcoholic liquor for human consumption is levied at the maximum rate of forty per cent
  4. DIntegrated tax on petroleum crude is levied only if supplied intra-State

Explanation

Section 5(2) says integrated tax on petroleum crude, high speed diesel, motor spirit, natural gas and aviation turbine fuel is levied from a date notified on the Council's recommendation. Section 5(1) excludes alcoholic liquor for human consumption altogether, so the alcohol option is wrong.

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