EXEMPTION UNDER GST-GST EXEMPTION- CGST ACT SECTION 11

The object of the article is mainly to address the government’s power to grant exemption from Goods and Services Tax (GST) under Section 11 of the CGST Act, 2017. The essence of the provision, however, is pretty clear and basic that it deals with what the government realized the need for the reasons for exemption.

Let us understand, before moving through the provisions of Section 11 of the CGST ACT, the notion of exemption and how Section 11 takes its place in the GST exemption.

GST EXEMPTION-SUPPLY OF EXEMPTS

Exempt supply, under GST, essentially means the supply of goods and services that do not attract tax. Since we all know that GST is dependent on supply, Exempt Supply does not attract GST despite the trigger. Apparently, the input tax credit charged in conjunction with these materials will not be available for use or the GST liability will also be set aside.

The following are three forms of supply, to put into simple terms, which are known as exempt supply:

Supplies that are taxable at the zero tax rate
Section 11 of the CGST and Section 6 of the IGST are supplies that are partly and entirely excluded from the GST tax.
Supplies covered by Section 2(78) of the CGST Act concerning ‘non-taxable supplies’ Ex. distilled beverages for use by humans.

Right To Offer Tax Exemption

In essence, the provisions of Section 11 of the CGST ACT concern the power of the Government to grant a tax exemption, i.e. a GST exemption for the supply of goods and services. However, in order to understand the reason for this exemption as given, it is important for us to analyze the underlying requirements recognized by the government in order to grant an exemption under this provision.

Governments are initially allowed to grant exemptions, provided that such exemptions are met under the following conditions.

1. In the public interest, it should be
2. Made by means of the notification issue
3. The recommendation of the GST Council must be
4. The total waiver or conditional waiver
5. Exemptions can be issued by special order (not by notification) in extraordinary circumstances.

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