CMA Intermediate · Direct and Indirect Taxation · Exemption from Tax
A special order under Section 11(2) of the CGST Act, 2017 differs from a general notification under Section 11(1) because it:
A special order under Section 11(2) is made case by case, in exceptional circumstances that the order must state, and still needs the Council's recommendation and a public interest satisfaction. A Section 11(1) notification instead grants a general exemption for goods or services of a specified description.
- Ais issued in each case under circumstances of an exceptional nature that must be stated in the orderCorrect
- Bapplies to all goods of a specified description across the country
- Ccan be issued without the Council's recommendation
- Dcan be issued only to reduce the rate and never to exempt fully
Explanation
Section 11(2) allows exemption by special order in each case, under exceptional circumstances stated in the order, on the Council's recommendation. Section 11(1) is the general exemption by notification for goods or services of a specified description. The Council's recommendation is still needed, so the third option is wrong.
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