THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
LEVY AND COLLECTION OF TAX
Section 11: 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.