For the smooth functioning and implementation of an Act, The government/Lawmaker should have some powers to amend or flexible it accordance with the circumstances. The GST act is implemented in the India w.e.f. 01-07-2017 and it is new act for our country. Section 11 of CGST Act, empower the government to grant exemptions on the recommendation of GST Council in the public interest.
Extract of Section 11 of CGST Act (Power to grant exemption from tax)
(1) Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the Council, by notification, exempt generally, either absolutely or subject to such conditions as may be specified therein, goods or services or both of any specified description from the whole or any part of the tax leviable thereon with effect from such date as may be specified in such notification.
(2) Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the Council, by special order in each case, under circumstances of an exceptional nature to be stated in such order, exempt from payment of tax any goods or services or both on which tax is leviable.
(3) The Government may, if it considers necessary or expedient so to do for the purpose of clarifying the scope or applicability of any notification issued under sub-section (1) or order issued under sub-section (2), insert an explanation in such notification or order, as the case may be, by notification at any time within one year of issue of the notification under sub-section (1) or order under sub-section (2), and every such explanation shall have effect as if it had always been the part of the first such notification or order, as the case may be.
Explanation/Clarification and comparison in below table :-
Moreover, as per section 11(3) The Government, in order to clarify the scope or applicability of exemption notification [Section 11(1)] or exemption order [Section 11(2)], may later on insert an explanation(s) and/or clarification(s) to the exemption notification or order within one year of such original notification or order.
Important Notifications issued for exemption from payment of GST:
- Notification No. 02/2017 Central Tax (Rate) dated 28.06.2017 (Exempted supplies of around 149 items of services in terms of Section11(1) of the CGST Act, 2017. Example. Electricity, Salt, fresh fruits etc. Further amended vide Notification No.28/2017,35/2017,42/2017, 7/2018, 19/2018 – Central Tax (Rate))
- Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 (Exemption to supply specified services under the CGST Act. More or less, all the exemptions were available earlier under the erstwhile service tax law further amended vide Notification No.21/2017, 25/2017, 32/2017 and 47/2017, 2/2018 – Central Tax (Rate))
Author Bio
SIR CAN I KNOW IF THERE IS ANY ENTRY IN EXEMPTION LIST REGARDING GRANT RECEIVED BY A GOVERNMENT ORGANISATION FROM THE GOVERNEMENT DEPARTMENT