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CMA Intermediate · Direct and Indirect Taxation · Exemption from Tax

Which statement about the Government's power to exempt by special order under Section 11(2) of the CGST Act, 2017 is correct?

A special order under Section 11(2) is made case by case, in the public interest, on the GST Council's recommendations, and must state the exceptional circumstances justifying it. It differs from the general exemption notification under Section 11(1).

  1. AIt is exercised on the recommendations of the Council, in each case, under circumstances of an exceptional nature stated in the orderCorrect
  2. BIt is exercised for any class of goods generally without stating any reason
  3. CIt can be exercised without any recommendation of the Council
  4. DIt is available only for exports of goods

Explanation

Section 11(2) allows exemption by special order in each case, on the Council's recommendations and under exceptional circumstances that must be stated in the order. It is case-specific rather than general, which is the role of sub-section (1). It is not restricted to exports.

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