Question10:  

Notification No. 11/2017 dated 28-06-2017 regarding Central Tax (Rate ) effective from 01-07-2017 for services was amended as per following notifications:

a.Notification No. 20/2017 dated 22-08-2017 regarding Central Tax (Rate ) has substituted various services to be taxed @ 6% and 2.5%

b.Notification No. 24/2017 dated 21-09-2017 regarding Central Tax (Rate ) has substituted various entries to be taxed @ 6%

c.Notification No. 31/2017 dated 13-10-2017 regarding Central Tax (Rate ) has substituted various entries to be taxed @ 6% 

What is date of effectiveness of above these substitutions made vide notification nos. dated 22-08-2017, 21-09-2017 and 13-10-2017  and what is the legal position for the date of effectiveness of the above notifications ?

Answer:

According to Section 11 of CGST Act, 2017 an exemption Notification takes effect the date specified in the Notification. Said Section 11 is reproduced below for ease of convenience';

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. Original Notification No. 11/2017-CT (R) dated 28,06.2017 became effective on 01.07.2017 with the implementation of GST regime and subsequent amending notification became effective from the respective dates on which the same were issued  Sub-section (3) of said Section 11 makes it amply clear that even the Government can insert an explanation to any Notification at any time within one year of the issue of any exemption Notification and such explanation will have effect as if the explanation was always the part of the Notification.  (Reply dt. 23/11/2017)