Section 11 of GST - Power to grant exemption from Tax

GST Act 2017: Section 11 of GST Act 2017 – Power to grant exemption from Tax. Check out details for GST Section 11 as per CGST Act 2017. Complete Analysis of GST Section 11, Section 11 of GST provide details for Power to grant exemption from Tax.

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Section 11 of GST Act 2017 – Power to grant exemption from Tax

(1) Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the Council, by notification, exempt generally, either absolutely or subject to such conditions as may be specified therein, goods or services or both of any specified description from the whole or any part of the tax leviable thereon with effect from such date as may be specified in such notification.

(2) Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the Council, by special order in each case, under circumstances of an exceptional nature to be stated in such order, exempt from payment of tax any goods or services or both on which tax is leviable.

(3) The Government may, if it considers necessary or expedient so to do for the purpose of clarifying the scope or applicability of any notification issued under sub-section (1) or order issued under sub-section (2), insert an explanation in such notification or order, as the case may be, by notification at any time within one year of issue of the notification under sub-section (1) or order under sub-section (2), and every such explanation shall have effect as if it had always been the part of the first such notification or order, as the case may be.

Explanation.––For the purposes of this section, where an exemption in respect of any goods or services or both from the whole or part of the tax leviable thereon has been granted absolutely, the registered person supplying such goods or services or both shall not collect the tax, in excess of the effective rate, on such supply of goods or services or both.

Introduction

This provision confers powers on the Central Government to exempt either absolutely or conditionally goods or services or both of any specified description from whole or part of the central tax, on the recommendations of the Council. It also confers power on the Central Government to exempt from payment of tax any goods or services or both, by special order, on recommendation of the Council.

Frequently Asked Questions

When exemption from whole of tax leviable on goods and/ or services has been granted unconditionally, can taxable person collect tax?

No, the taxable person providing goods and/or services shall not collect the tax on such goods and/ or services in respect of those supplies which are notified for absolute exemptions.

Under what circumstances can a special order be issued?

The Government may in public interest, issue a special order on recommendation of GST Council, to exempt from payment of tax, any goods and/ or services on which tax is leviable. The circumstances of exceptional nature would also have to be specified in the special order.

What shall be the effective date in case of issue of notification?

The notification shall be effective from the date as mentioned in the notification. However, in case no date is mentioned in the notification the effective date shall be the date of issue of the notification.

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Section 11 of GST – Power to grant exemption from Tax