EXEMPTION FROM GST - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

9. EXEMPTION FROM GST 9.1. Section 11 of the CGST Act, 2017 and Section 6 of the IGST Act, 2017, empowers the Government to exempt either wholly or partly, on the recommendations of the GST Council, the supplies of goods and/or services from the levy of Central Tax or Integrated tax, respectively, either absolutely or subject to conditions. Further, Government can exempt, under circumstances of an exceptional nature, by special order any goods or services or both. (Inserted by Section 116 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024.and Inserted by Section 152 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024.) [As per Section 11A of the CGST Act, 2017 and Section 6A of the IGST Act, 2017, if the Government is satisfied that a practice was generally prevalent regarding levy or non-levy of Central tax or higher levy than what was being levied, on any supply of goods and/or services, then the Government may direct that the whole of the relevant tax payable on such supplies or the relevant tax in excess of that payable on such supplies, but for the said practice, shall not be required to be paid.] 9.2. The SGST Act, 2017 and UTGST Act, 2017 provide that any exemption granted under CGST Act, 2017 shall be deemed to be exemption under these Acts. 9.3. If exemption from whole of tax on goods or services or both has been granted, the person cannot pay tax on his own volition. Further, if the goods are partly exempted, the person supplying exempted goods or services or both shall not collect the tax in excess of the effective rate.