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CMA Intermediate · Direct and Indirect Taxation · Exemption from Tax

Which of the following correctly describes the scope of the exemption power in Section 6(1) of the IGST Act, 2017?

Section 6(1) lets the Government exempt goods or services or both of a specified description from the whole or part of the tax, absolutely or with conditions, effective from the date stated in the notification, after Council recommendation and public interest satisfaction.

  1. AIt can exempt goods or services or both of a specified description, wholly or in part, absolutely or subject to conditionsCorrect
  2. BIt can exempt only goods, and only wholly
  3. CIt can exempt only specific named persons, not descriptions of goods or services
  4. DIt can exempt only with retrospective effect from the date of the Act

Explanation

Section 6(1) covers goods or services or both of any specified description, from the whole or any part of the tax, absolutely or subject to conditions, with effect from a date specified in the notification. Hence the other options misstate its scope.

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