Amended and updated notes on section 11 of CGST Act, 2017. Detail discussion on provisions and rules related to power to grant Exemption.
Chapter III (Sections 7–11) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to levy and collection of tax. Section 11 of CGST 2017 provides for power to grant Exemption.
Recently, we have discussed in detail section 10 (Composition levy) of CGST Act 2017. Today, we learn the provisions of section 11 of Central GST Act 2017.
Section 11 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. This notification was come into force from 1st July, 2017 i.e. the commencement date of section 11 is 1-7-2017.
| Name of Act | The Central Goods and Services Tax Act 2017 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Central Board of Indirect Taxes & Customs |
| Governing body | GST Council |
| Number of Chapters | 21 |
| Number of Sections | 174 |
| You are reading: | |
| Chapter No. | III |
| Chapter Name | Levy and Collection of Tax |
| Section No. | 11 |
| Section Name | Power to grant Exemption |
| Updated 2024 Edition | GST Law Book PDF |
Section 11 of Central GST – Power to grant Exemption1
Section 11 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017
Section 11(1) of CGST Act
Section 11(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.
Section 11(2) of CGST Act
Section 11(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.
Section 11(3) of CGST Act
Section 11(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.
The CG vide Notification No. 5/2018-Central Tax (Rate), G.S.R. 68(E) dated 25-01-2018 exempts the intra-State supply of services by way of grant of license or lease to explore or mine petroleum crude or natural gas or both, from so much of the central tax as is leviable on the consideration paid to the Central Government in the form of Central Government’s share of profit petroleum as defined in the contract entered into by the Central Government in this behalf.
- Section 11 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. ↩︎