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CA Intermediate · Taxation · Exemptions from GST

Under Section 11 of the CGST Act, 2017, which of the following is correct about the power to exempt supplies?

Under Section 11, the Government may exempt goods or services, wholly or partly, in public interest, on the Council's recommendation and by notification. Parliament's amendment is not required, and exemption cannot be granted by a Commissioner's order without notification.

  1. AOnly Parliament can grant an exemption, by amending the Act
  2. BThe Government may exempt goods or services in public interest on the recommendation of the GST Council, by notificationCorrect
  3. CThe State Government alone may exempt intra-State supplies without any recommendation
  4. DThe Commissioner can grant exemption to any person through an order, without notification

Explanation

Section 11 empowers the Central Government to grant exemption from tax, wholly or partly, in public interest on the recommendation of the Council by notification. Exemption need not be by amendment of the Act, so the first option is wrong. The Commissioner's special orders are also on recommendation, not without notification.

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