Under Section 11 of the CGST Act,2017 the Central or the State Governments are empowered to grant exemptions from tax, subject to the following conditions:
(i) Exemption should be in public interest
(ii) By way of issue of notification
(iii) On recommendation from the Council
(iv) Absolute / conditional exemption may be for any goods and / or services
(v) Exemption by way of special order (and not notification) may be granted by citing the circumstances which are of exceptional nature
Notification No. 09/2017-Central Tax (Rate) dated 28.06.2017
Intra state “ Supply” received by a deductor u/s 51 from unregistered person, who is otherwise not required to registered under GST, is exempted from payment of tax under Reverse charge basis.
Notification No. 10/2017-Central Tax (Rate) dated 28.06.2017
Intra state “ Supply” received by a registered person from unregistered person, dealing in buying and selling of second hand goods and who pays the central tax on the value of outward supply is exempted from payment of tax under Reverse charge basis.
Notification No. 08/2017-Central Tax (Rate) dated 28.06.2017
Intra state supplies of goods or services or both by a registered person from an unregistered person is exempted from payment of tax under reverse charge provided the aggregate value of such supplies received by a registered person from all or any of the suppliers does not exceed Rs. 5000/- in a day.
Note :
It is pertinent to mention that the exemption would be in respect of goods or services or both, and not specifically for any classes of persons. E.g.: An absolute exemption could be granted in respect of supply of Electricity. A conditional exemption could be supply of goods to canteen stores department
Example of Absolute Exemption
1. Transmission or distribution of electricity by an electricity transmission or distribution utility.
2. Services by way of renting of residential dwelling for use as residence.
3. Services by Reserve Bank of India.
4.Services by a veterinary clinic in relation to health care of animals or birds
Example of Conditional exemption
1. Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having declared tariff of a unit of accommodation less than Rs. 1000/- per day
2. Intra state supplies of goods or services or both by a registered person from an unregistered person is exempted from payment of tax under reverse charge provided the aggregate value of such supplies received by a registered person from all or any of the suppliers does not exceed Rs. 5000/- in a day.
List of Various exemption Notification
| Sl No. | Notification No. | Particulars |
| 1 | Notification No. 02/2017 – Central Tax (Rate) dated 28.06.2017 | Exempted supplies of around 149 items of goods in terms of Section 11(1) of the CGST Act, 2017. Ex. Electricity, Salt, fresh fruits, potato, tomato, onion, plastic bangles, passenger baggage etc. |
| 2 | Notification No. 03/2017- Central Tax (Rate) dated 28.06.2017 | Goods specified in the List annexed required in connection with various kinds of petroleum operations undertaken are given concessional rate i.e. at the rate of 2.5% under CGST i.e. 5% IGST. |
| 3 | Notification No. 07/2017- Central Tax (Rate) dated 28.06.2017 | Exemption to supplies by CSD to Unit Run Canteens and supplies by CSD / Unit Run Canteens to authorised customers |
| 4 | Notification No.08/2017-Central Tax (Rate) dated 28.06.2017 | Exemption granted from levy of CGST under RCM on supplies received from unregistered persons. (if value of supplies does not exceed Rs. 5000 from any or all the suppliers in a day) |
| 5 | Notification No. 09/2017- Central Tax (Rate) dated 28.06.2017 | Exemption granted to supplies to a TDS deductor by a unregistered supplier |
| 6 | Notification No.10/2017 -Central Tax (Rate) dated 28.06.2017 | Exemption to Supplies of second hand goods received by registered person dealing in buying & selling of second hand goods from unregistered person provided the dealer pays central tax on supply of such second-hand goods as per Valuation Rules |
| 7 | Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 | Exemption to supply of 81 services under CGST Act. More or less, all the exemptions were available earlier also in service tax law |
| 8 | Notification No. 21/2017-Central Tax (Rate) dated 22.08.2017 | Seeks to amend notification No. 12/2017-CT(R) to exempt services provided by Fair Price Shops to Government and those provided by and to FIFA for FIFA U-17. Also to substitute RWCIS & PMFBY for MNAIS & NAIS, and insert explanation for LLP |
| 9 | Notification No. 25/2017-Central Tax (Rate) dated 21.09.2017 | Seeks to amend notification No. 12/2017-CT(R) to exempt right to admission to the events organised under FIFA U-17 World Cup 2017 |
| 10 | Notification No. 26/2017-Central Tax (Rate) dated 21.09.2017 | Exempts intra state supply of heavy water and nuclear fuels by the Department of Atomic Energy to the Nuclear Power Corporation of India Ltd. |
The Author is a Fellow of ICAI, New Delhi and Fellow of ICAI, Kolkata, he can be reached at surucan@gmail.com. Mob. 09805072910.
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Very helpful article Thanks a lot Sir
Dear sir, a nice article in a way it’s simple and provides many information in one place and with reference of notifications. I hope to see more of this type of this article from your side in future. Regards Gokulesh.
yes you can clam
can I take ITC, if i have paid RCM @ 5% on Freight Inward