Which of the following is kept outside the purview of GST by the Constitution itself?

The correct answer is B, alcoholic liquor for human consumption. The definition of goods and services tax inserted by the hundred and first amendment expressly excludes it, so states continue to levy state excise and value added tax on liquor, and it is a major source of their own revenue.

Option A, tobacco products, are within GST, and in addition the Centre may levy central excise duty on them and a compensation cess is charged, so they are taxed more heavily rather than excluded. Option C, cement, is an ordinary taxable supply under GST. Option D, air-conditioners, are likewise taxable and were placed in the highest slab at the rollout as a consumer durable. Along with liquor, the items still outside the actual levy are the five petroleum products and electricity, but those are excluded by decision rather than by the definition in the Constitution.