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

Which condition must the Government be satisfied about before issuing a notification under Section 11A of the CGST Act, 2017?

The Government must be satisfied that a practice was or is generally prevalent about levy of central tax, including non-levy, on the supply, and that the supplies were actually liable to tax or to a higher tax. Interest payment, composition status or relationship of parties is irrelevant.

  1. AThat the supplier has voluntarily paid interest on the unpaid tax
  2. BThat a practice was or is generally prevalent regarding levy of central tax, including non-levy, on the supplyCorrect
  3. CThat the supplier is registered under the composition scheme
  4. DThat the supply was made to a related person

Explanation

Clause (a) of Section 11A requires satisfaction that a practice was, or is, generally prevalent regarding levy (including non-levy) of central tax on supplies. Payment of interest, composition registration or relatedness is not a stated condition.

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