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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Overview of Goods and Services Tax

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

The Government must be satisfied that a practice was or is generally prevalent regarding levy or non-levy of central tax, and that the supplies were or are in fact liable to tax, or to a higher tax than the practice applied.

  1. AA practice was or is generally prevalent on levy (including non-levy) of central tax, and the supplies were or are liable to tax or to a higher tax than the practice leviedCorrect
  2. BThe taxpayer has deposited the entire tax with interest, and the supplies are exempt under a notification
  3. CThe supplier has obtained an advance ruling, and the practice was followed by a single taxpayer
  4. DThe tax was collected from the recipient, and a refund application has been filed

Explanation

Section 11A requires (a) a generally prevalent practice regarding levy or non-levy of central tax and (b) that the supplies were or are actually liable to tax or a higher amount than was levied under the practice. A practice followed by one taxpayer is not a general practice.

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