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CMA Intermediate · Direct and Indirect Taxation · Exemption from Tax

A notification under Section 6(1) of the IGST Act was issued on 1 March 2027. The Government wants to insert an Explanation to clarify its scope. Which statement is correct?

Under Section 6(3), the Government may insert a clarifying Explanation by notification within one year of the original notification. Such an Explanation takes effect as if it had always been part of the original notification, so it operates retrospectively.

  1. AIt may do so by notification within one year of issue, and the Explanation is treated as always part of the original notificationCorrect
  2. BIt may do so at any time, but the Explanation applies only from the date it is inserted
  3. CIt may do so within six months, and the Explanation applies only prospectively
  4. DIt may not insert any Explanation once a notification is issued

Explanation

Section 6(3) allows an Explanation by notification within one year of issue of the notification, to clarify its scope or applicability. The Explanation has effect as if it had always been part of the first notification, so it is retrospective, not prospective.

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