Goods and Services Tax (GST) and Corporate Tax Planning · Overview of Goods and Services Tax

Section 11A CGST Act: Power Not to Recover Tax by General Practice

Updated 11 October 2026 · Fact-checked

Section 11A of the CGST Act lets the Government, on the Council's recommendation, notify that tax need not be paid where a generally prevalent practice meant tax was not levied or was short-levied, though the supply was actually taxable. Section 6A of the IGST Act gives the same power for integrated tax.

Understand Power Not to Recover Tax Short-Levied by General Practice

Sometimes an entire trade follows one view of the law. Suppliers do not charge GST on a type of supply, or they charge a lower amount. Later, it turns out that the supply was taxable, or taxable at a higher rate. If the department demands the unpaid tax for past periods, many honest suppliers face a heavy bill. They usually could not recover it from customers either.

Section 11A deals with this. It was inserted by Act 15 of 2024 with effect from 1-11-2024. It gives the Government a discretionary power to say that such tax shall not be required to be paid. It is a relief provision, not a right you can claim on your own.

The power works only through a notification in the Official Gazette, issued on the recommendation of the GST Council. The Government must first be satisfied about two things. First, a practice was, or is, generally prevalent about levy of central tax, including non-levy. Second, the supplies were, or are, actually liable to central tax (where it was not levied), or to a higher amount than what was levied under the practice.

The relief covers two situations. One is non-levy: the whole of the tax payable is not required to be paid. The other is short-levy: only the excess over what the practice charged is not required to be paid. Section 6A of the IGST Act is the matching provision for integrated tax, with the same wording and the same date of effect.

Think of it as a bridge between strict law and fairness. The law is not changed and the supply stays taxable. The Government only chooses not to collect the past gap for the supplies covered by the notification.

Key rules to remember

Source of power (CGST): Section 11A, CGST Act, 2017; Inserted by Act 15 of 2024, section 116, w.e.f. 1-11-2024. Covers central tax.
Matching provision (IGST): Section 6A, IGST Act, 2017; Same power for integrated tax. Inserted by Act 15 of 2024, section 152, w.e.f. 1-11-2024.
Condition (a): A practice was, or is, generally prevalent regarding levy of tax (including non-levy); The practice must be general, not limited to one taxpayer.
Condition (b): Supplies were, or are, liable to (i) tax, where the practice was non-levy, or (ii) a higher amount than what was levied under the practice; The supplies must actually be taxable or taxable at more. The practice does not change the law.
Procedure: Government satisfied + Council recommendation + notification in the Official Gazette; All three are needed before any relief arises.
Extent of relief: Non-levy: whole tax not payable. Short-levy: only the excess over the practice amount not payable; Relief applies to the supplies covered by the notification and levied per the practice.

How to solve Power Not to Recover Tax Short-Levied by General Practice questions

Use this method for any case question on section 11A or section 6A.

1Identify the tax involved: central tax (section 11A, CGST) or integrated tax (section 6A, IGST).
2Check whether a practice existed in how tax was levied or not levied, and whether it was generally prevalent across suppliers.
3Check that the supplies were in fact liable to tax, or to a higher amount, under the law. If they were not liable, section 11A is not needed.
4Check for the procedural trio: Government satisfaction, Council recommendation and an Official Gazette notification.
5Classify the case as non-levy or short-levy to fix the extent of relief: whole tax, or only the excess.
6Compute the amount not required to be paid, if figures are given.
7State the conclusion clearly: the relief exists only if and as far as notified. Mention that it is a power, not a right.

Quickest way: Four-test checklist

When to use it: Use it for short-answer questions or when time is tight in a case study.

Test 1: Was there a general practice? One taxpayer's own view is not enough.
Test 2: Was the supply really taxable, or taxable at more?
Test 3: Is there a Council-recommended Gazette notification?
Test 4: Non-levy means whole tax is waived. Short-levy means only the excess is waived.
If any test fails, the normal demand and recovery provisions apply.

Common mistakes in Power Not to Recover Tax Short-Levied by General Practice

Treating section 11A as a right any taxpayer can claim after a short-levy.
The word 'power' is read as relief for everyone.
Fix: Write that it is a discretionary power of the Government exercised only by notification on the Council's recommendation.
Confusing it with section 128, the power to waive penalty or late fee.
Both are relief provisions that work by notification on the Council's recommendation.
Fix: Remember that section 11A concerns the tax itself. Section 128 concerns penalties under sections 122, 123 and 125 and late fee under section 47.
Forgetting that the supplies must actually be liable to tax.
Students focus on the practice and skip condition (b).
Fix: State both conditions. The practice must exist, and the supply must be taxable or taxable at a higher amount.
Saying the whole tax is waived in a short-levy case.
The two limbs of the section are merged.
Fix: In short-levy, only the tax in excess of what the practice charged is not payable. The amount already levied remains payable.
Ignoring section 6A of the IGST Act.
Only the CGST section is studied.
Fix: Mention that section 6A gives the same power for integrated tax. Both took effect on 1-11-2024.
Assuming the practice of a single taxpayer qualifies.
The word 'generally' is overlooked.
Fix: Stress that the practice must be generally prevalent, meaning followed widely in the trade or sector.

Worked examples

Example 1

For years, suppliers of a particular service across India charged no GST, following a widely held view that the service was exempt. It is later clarified that the service is taxable. Can the Government direct that tax for the past period need not be paid? State the conditions.

Show the solution

Identify the provision: section 11A of the CGST Act (and section 6A of the IGST Act for integrated tax).
Condition (a): non-levy was a generally prevalent practice, as suppliers across India followed it.
Condition (b): the service is in fact liable to tax, and the practice was non-levy.
Procedure: the Government must be satisfied, act on the Council's recommendation, and issue a notification in the Official Gazette.
Extent: for non-levy, the whole of the tax payable on such supplies is not required to be paid, for the supplies covered by the notification.

Answer: Yes. If both conditions are met and a Council-recommended notification is issued, the whole tax on those supplies will not be required to be paid. Without the notification, the demand provisions apply.

Example 2

Under a general practice, suppliers of a good charged GST at ₹6 per ₹100 of value, though the correct tax was ₹12 per ₹100. A supplier made a supply of ₹10,00,000 in the period. If a section 11A notification covers this practice, how much tax is not required to be paid, and how much remains payable?

Show the solution

This is a short-levy case: tax was levied at a lower amount under the practice.
Tax actually levied under the practice = ₹10,00,000 × 6 ÷ 100 = ₹60,000.
Correct tax = ₹10,00,000 × 12 ÷ 100 = ₹1,20,000.
Excess over the practice amount = ₹1,20,000 − ₹60,000 = ₹60,000.
Under section 11A, only the excess is not required to be paid, so ₹60,000 is not payable.
The ₹60,000 already levied under the practice remains payable.

Answer: ₹60,000 is not required to be paid, and the tax of ₹60,000 levied under the practice remains payable, assuming the notification covers these supplies.

Exam tips

Quote the section number correctly: section 11A for CGST and section 6A for IGST. Mention the insertion by Act 15 of 2024, w.e.f. 1-11-2024.
List the two conditions and the three procedural requirements separately. Examiners reward this structure.
Distinguish non-levy from short-levy in your answer, as the extent of relief differs.
Contrast section 11A with section 128 in one line if the question mentions waiver of penalty or late fee.
In case questions, end with a firm conclusion. Relief is available only if a notification is issued.

Practice questions from Overview of Goods and Services Tax

Power Not to Recover Tax Short-Levied by 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 ExecutivePower Not to Recover Tax Under General Practice

Power Not to Recover Tax Short-Levied by General Practice: frequently asked questions

What is general practice under section 11A?

The Act does not define it in the section. It means a practice generally prevalent regarding levy of central tax, including non-levy, on a supply. The Government must be satisfied that such a practice existed or exists.

Can a taxpayer claim relief under section 11A on their own?

No. The relief arises only when the Government issues a notification in the Official Gazette on the Council's recommendation. Until then, normal demand provisions apply.

Does section 11A change the tax rate or taxability of the supply?

No. The supply stays taxable. The Government only directs that the tax not levied or short-levied under the practice need not be paid, for the supplies covered by the notification.

Is there a similar provision for IGST?

Yes. Section 6A of the IGST Act, 2017 gives the same power for integrated tax. Both sections were inserted by Act 15 of 2024 with effect from 1-11-2024.

How is section 11A different from section 128?

Section 11A concerns the tax itself that was not levied or was short-levied. Section 128 allows the Government to waive penalties under sections 122, 123 or 125, or late fee under section 47, for notified classes of taxpayers.