CMA Intermediate · Direct and Indirect Taxation · Exemption from Tax
Which statement about a general exemption notification issued under section 11(1) of the CGST Act, 2017 is correct?
A general exemption notification under section 11(1) may be absolute or conditional, and it may cover the whole or any part of the tax. Special orders for exceptional circumstances fall under sub-section (2), not the general notification.
- AIt may be absolute or subject to conditions specified in itCorrect
- BIt must always be absolute and cannot carry any conditions
- CIt can be issued only by special order for exceptional circumstances
- DIt can exempt only the whole of the tax and never a part of it
Explanation
Section 11(1) permits exemption 'either absolutely or subject to such conditions as may be specified'. It also covers the whole or any part of the tax, so the 'whole only' and 'no conditions' options are wrong. Special orders are under section 11(2), a separate power.
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