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CMA Intermediate · Direct and Indirect Taxation · Exemption from Tax

Under Section 6(1) of the IGST Act, 2017, the Government may exempt goods or services from integrated tax by general notification. Which condition must be met before it does so?

The Government must be satisfied that the exemption is necessary in the public interest and must act on the Council's recommendations, issuing a notification. No parliamentary approval or supplier request is required under Section 6(1) of the IGST Act.

  1. AIt must be satisfied that exemption is necessary in the public interest, and act on the recommendations of the CouncilCorrect
  2. BIt must obtain prior approval of Parliament for each notification
  3. CIt must act on the request of the registered person who supplies the goods or services
  4. DIt must act on the recommendation of the jurisdictional Commissioner of the State

Explanation

Section 6(1) requires the Government to be satisfied that exemption is necessary in the public interest and to act on the recommendations of the Council, by notification. Parliamentary approval, a supplier's request or a State Commissioner's recommendation is not the stated condition.

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