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CS Executive · Tax Laws and Practice · Basics of Goods and Services Tax

Section 11A of the CGST Act, 2017 empowers the Government to direct that tax not levied or short-levied because of a general practice need not be paid. Which condition must be met for this power to be exercised?

The Government must be satisfied that a general practice prevailed and then act on the recommendation of the Council by notification in the Official Gazette. No Tribunal application or State resolution is needed, and it covers supplies under the practice, including past ones.

  1. AThe Government must act on the recommendation of the Council and issue a notification in the Official GazetteCorrect
  2. BThe taxpayer must have applied to the Appellate Tribunal for relief
  3. CThe State Government alone must pass a resolution
  4. DThe supplies must have been made only after the practice was abandoned

Explanation

Section 11A provides that, being satisfied that a practice was or is generally prevalent and the supplies were liable to tax or a higher tax, the Government may, on the recommendation of the Council, by notification in the Official Gazette, direct non-recovery. Tribunal applications and State resolutions are not required.

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