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CA Final · Indirect Tax Laws · Exemptions from GST

Under the GST law, the Government wishes to grant exemption from tax on a particular supply of goods in public interest. Which statement is correct?

The Central Government may grant the exemption by notification, provided it is satisfied that it is in public interest and acts on the recommendation of the GST Council. Individual officers and suppliers cannot create exemptions, and Parliament need not amend the Act each time.

  1. AOnly Parliament can grant such exemption by amending the Act
  2. BThe Central Government may do so by notification on the recommendation of the GST CouncilCorrect
  3. CA proper officer may grant it on the application of the supplier
  4. DExemption can be granted only by the State Government of the supplier

Explanation

The Central Government, if satisfied that it is necessary in public interest and on the recommendation of the Council, may exempt goods or services wholly or partly by notification. A proper officer has no such power. Parliament need not amend the Act for each exemption.

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