Skip to content

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

Section 11A of the CGST Act, 2017 allows the Government to direct that tax need not be paid on certain supplies. Which condition must be met?

The Government must be satisfied that a general practice prevailed regarding non-levy or short-levy of central tax on the supplies, and must act on the GST Council's recommendation by Official Gazette notification. Individual unawareness or payment under protest is not the test.

  1. AThe Government is satisfied that a practice was or is generally prevalent regarding levy (or non-levy) of central tax on the supplies, and it acts on the Council's recommendation by notificationCorrect
  2. BThe taxpayer simply claims that he was unaware of the tax liability
  3. CThe supplier has paid the tax under protest earlier
  4. DThe Government acts without any recommendation from the Council

Explanation

Section 11A requires satisfaction that a general practice prevailed regarding non-levy or short-levy of central tax, and the Government must act on the Council's recommendation through a Gazette notification. Individual ignorance is not a ground, and the Council's recommendation is mandatory.

Did you get it right without looking?

One question tells you little. A timed set on Overview of Goods and Services Tax shows your real accuracy, how long you take and where you lose marks.

Practise Overview of Goods and Services TaxFree diagnostic mock

More Overview of Goods and Services Tax questions