Tax Laws and Practice · Basics of Goods and Services Tax

Power Not to Recover GST Under General Practice (Section 11A)

Updated 11 October 2026 · Fact-checked

Section 11A of the CGST Act lets the Government, on the Council's recommendation and by notification, direct that tax not levied or short-levied because of a generally prevalent practice need not be paid. Section 6A of the IGST Act gives the same power for integrated tax. You solve questions by testing the practice, the liability and the notification.

Understand Power Not to Recover Tax Under General Practice

Sometimes an entire trade or industry follows a belief about how GST applies. For example, suppliers of a certain service may not charge tax at all, or may charge it at a lower amount. Later it becomes clear that the law actually required tax, or a higher tax. If the department then demands the past tax from everyone, many honest businesses face large bills they never collected from customers.

Section 11A is the remedy. It lets the Government say: for those past supplies, the tax that was not levied, or the excess over what was levied, need not be paid. It is a relief provision. It does not change the law. It only protects the period during which the practice existed.

The section was inserted by Act 15 of 2024 with effect from 1 November 2024. An identical power for integrated tax sits in section 6A of the IGST Act, 2017, inserted by the same Act.

The section starts with "Notwithstanding anything contained in this Act", so it overrides other provisions on recovery. But the relief is not automatic. The Government must be satisfied that the conditions are met, the Council must recommend it, and the relief must come through a notification in the Official Gazette.

The covered supplies are those where tax was not levied at all, or was levied at a lower amount, in accordance with the said practice. Supplies outside the practice get no relief.

Key rules to remember

Condition (a): general practice: A practice was, or is, generally prevalent regarding levy of central tax (including non-levy) on any supply of goods or services or both; The practice must be general, not one taxpayer's own view. Non-levy also counts as a practice.
Condition (b): supplies actually liable: Supplies were, or are, liable to (i) central tax where none was levied, or (ii) a higher amount than what was levied under the practice; This covers both non-levy and short-levy.
Procedure: Government satisfied + Council's recommendation + notification in the Official Gazette; All three are needed before relief operates.
Effect of notification: Whole tax (non-levy) or the excess tax (short-levy) need not be paid on those supplies; Relief is limited to supplies in accordance with the practice.
Parallel provision: Section 6A of the IGST Act, 2017 for integrated tax; Same wording, with integrated tax in place of central tax.

How to solve Power Not to Recover Tax Under General Practice questions

Use this method for any fact-based or theory question on section 11A. Write the answer in ICSI style: provision, application, conclusion.

1State the provision: section 11A CGST Act gives the Government power not to recover tax not levied or short-levied because of a general practice.
2Test condition (a): was a practice generally prevalent, covering levy or non-levy of central tax on a supply of goods or services or both?
3Test condition (b): were the supplies in fact liable to tax, or to a higher tax than what was levied under the practice?
4Check that the supply was made in accordance with the said practice. If the taxpayer did something different, relief does not apply.
5Check the procedure: Government satisfied, Council's recommendation, and a notification in the Official Gazette.
6State the effect: whole tax, or only the excess, need not be paid. Mention section 6A of the IGST Act if integrated tax is involved.
7Conclude clearly: relief is available only if a notification has been issued, and only to the extent it covers.

Quickest way: Four-check shortcut

When to use it: When a short problem asks whether tax can be recovered despite a prevailing trade practice.

Practice: generally prevalent, or just one person's view?
Liability: was tax actually due, or due at a higher amount?
Process: Council recommendation and Gazette notification present?
Scope: were the supplies made in accordance with the practice? Then conclude, citing section 11A (or 6A of IGST).

Common mistakes in Power Not to Recover Tax Under General Practice

Saying relief applies automatically once a practice exists.
Students focus on the practice and forget the procedure.
Fix: Always state that the Government must notify the relief, on the Council's recommendation, in the Official Gazette.
Treating section 11A as covering only non-levy.
The title mentions both, but students recall only the first.
Fix: Remember both limbs: non-levy (whole tax) and short-levy (the excess over what was levied).
Confusing section 11A with section 11, the power to grant exemption.
The numbers are adjacent and both involve notifications.
Fix: Section 11A does not exempt supplies. It only waives recovery of past tax due to a general practice.
Forgetting the IGST counterpart.
Students study only the CGST Act.
Fix: Add that section 6A of the IGST Act gives the same power for integrated tax.
Giving relief to a taxpayer whose conduct did not follow the practice.
Students overlook the words "in accordance with the said practice".
Fix: Check that the tax was not levied or was short-levied because of that practice.

Worked examples

Example 1

Suppliers of a particular service across an industry did not charge GST for years, believing it to be non-taxable. The service is later held to be taxable. Can the Government waive recovery for the past period? Answer with reference to the CGST Act.

Show the solution

Provision: section 11A of the CGST Act allows the Government to direct that tax need not be paid where tax was not levied as a result of a general practice.
Condition (a): non-levy across the industry shows a practice generally prevalent, and non-levy is expressly covered.
Condition (b): the supplies were in fact liable to central tax, though none was levied under the practice.
Procedure: the Government must be satisfied, act on the Council's recommendation and issue a notification in the Official Gazette.

Answer: Yes. If the Government issues such a notification on the Council's recommendation, the whole central tax on those supplies need not be paid. Without a notification, recovery remains possible. Section 6A of the IGST Act applies similarly to integrated tax.

Example 2

Traders in a commodity charged GST at a lower amount than the law required, following a common trade practice. Explain what relief section 11A can give and its extent.

Show the solution

Identify the case as short-levy: tax was levied, but at a lower amount, in accordance with a general practice.
Condition (b)(ii) applies: the supplies were liable to a higher amount than was levied.
The Government may notify, on the Council's recommendation, that the central tax in excess of what was levied need not be paid.
Extent: relief covers only the excess for supplies made in accordance with the practice. Tax actually levied stays payable.

Answer: Section 11A can waive only the shortfall, that is, the tax in excess of the amount levied under the practice, and only through a Gazette notification. The tax already levied must still be paid.

Exam tips

Write the three requirements together: general practice, Council's recommendation, Gazette notification.
Quote the phrase "in accordance with the said practice" when limiting the relief.
Mention that the section was inserted w.e.f. 1 November 2024 and that IGST section 6A mirrors it.
In case problems, end with a firm conclusion on whether tax is recoverable, stating that relief depends on notification.

Practice questions from Basics of Goods and Services Tax

Power Not to Recover Tax Under General Practice in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

CS ProfessionalPower Not to Recover Tax Short-Levied by General Practice

Power Not to Recover Tax Under General Practice: frequently asked questions

What is section 11A of the CGST Act?

It gives the Government power to direct, by notification, that tax not levied or short-levied because of a general practice need not be paid. It acts on the Council's recommendation. It was inserted with effect from 1 November 2024.

Does section 11A apply to IGST?

Not directly. Section 6A of the IGST Act, 2017 gives the same power for integrated tax. Its wording matches section 11A, with integrated tax in place of central tax.

Is a general practice enough to avoid paying tax?

No. The relief arises only when the Government issues a notification in the Official Gazette on the Council's recommendation. Without it, tax remains recoverable.

Does the relief cover short-levied tax too?

Yes. Where tax was levied at a lower amount under the practice, the excess over what was levied can be notified as not payable. The tax already levied stays payable.