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

Under section 11A of the CGST Act, 2017, when may the Government direct that central tax not levied or short-levied need not be paid?

The Government may do so when a practice was or is generally prevalent on levy or non-levy of central tax, though the supplies were liable to tax or higher tax. It must act on the GST Council's recommendation by notification in the Official Gazette.

  1. AWhenever a taxpayer requests relief, without any recommendation
  2. BWhere a practice was or is generally prevalent regarding levy (including non-levy) of central tax, the supplies were liable to tax or higher tax, and the Council recommends it, by notificationCorrect
  3. COnly where the taxpayer has already paid the tax under protest
  4. DOnly where the supplies are exempt under every State GST law

Explanation

Section 11A needs the Government to be satisfied that a general practice prevailed on levy or non-levy, while the supplies were actually liable to tax or a higher amount. The Government may then, on the Council's recommendation, notify that the tax not paid or in excess need not be paid. Individual requests or protest payments are not conditions.

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