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

Under Section 11A of the CGST Act, 2017, a notification is issued for supplies that were short-levied according to a generally prevalent practice. What may the notification direct?

The notification may direct that the central tax in excess of the amount payable under the prevalent practice shall not be required to be paid. Where tax was not levied at all, the whole tax may be excused. It is a non-recovery power, not a refund provision.

  1. AThat the entire central tax on such supplies, including the tax actually levied, be refunded
  2. BThat the central tax in excess of that payable according to the practice need not be paidCorrect
  3. CThat the practice be treated as law for all future supplies permanently without any notification
  4. DThat penalty alone is waived while the tax remains payable

Explanation

For short-levy cases, the section lets the Government direct that the central tax in excess of that payable under the practice need not be paid. It does not provide a refund of tax already levied, nor does it only waive penalty.

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