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CMA Intermediate · Direct and Indirect Taxation · Exemption from Tax

Which of the following is a correct statement about an exemption granted by special order under Section 6(2) of the IGST Act, 2017?

A special order under Section 6(2) is made case by case, where the Government finds it necessary in the public interest, on the Council's recommendations, and the exceptional circumstances must be stated in the order. It covers goods or services or both.

  1. AIt is issued in each case under circumstances of an exceptional nature, which must be stated in the orderCorrect
  2. BIt applies generally to all goods of a specified description without stating any reasons
  3. CIt can be issued without the recommendations of the Council
  4. DIt can be issued only for services and not for goods

Explanation

Section 6(2) permits exemption by special order in each case, in the public interest, on the Council's recommendations, under exceptional circumstances stated in the order. It covers goods or services or both and needs Council recommendation. A general exemption is the Section 6(1) route.

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