1. Section 11 of the Central Goods and Services Tax Act (CGST Act):

• General exemptions:This section empowers the Government, on the recommendations of the Goods and Services Tax Council (GST Council), to notify certain goods or services or both as completely or partially exempt from the CGST. These exemptions are usually based on public interest or to promote specific sectors or products.
• Explanation:It clarifies that for absolutely exempted goods or services, registered suppliers cannot collect any tax (CGST), even if the effective rate (combined CGST & SGST) is higher than the exemption notification rate under GST Act 2017

2. Section 6 of the GST Integrated Goods and Services Tax Act (IGST Act):

• General exemptions:Similar to Section 11 of the CGST Act, this section allows the Government, on the GST Act 2017 Council’s recommendation, to grant general exemptions (absolute or conditional) for specified goods or services from the whole or part of the IGST.
• Special order exemptions:Additionally, the Government can, in exceptional circumstances, grant an exemption from IGST payment for specific goods or services through a special order in each case. These circumstances need to be clearly stated in the order GSTAct 2017.

EXAMPLE

The power to grant exemptions from the CGST and IGST tax lies with the Central Government, following Section 11 of the CGST GST Act, 2017 and Section 6 of the IGST Act, 2017. However, the specific requirements and process for claiming exemptions can vary based on the type of tax (CGST, IGST, or SGST) and the specific state in India.

To offer you a more detailed explanation, please provide some additional information:

1. Which specific tax are you interested in?Is it CGST, SGST, or IGST?
2. What kind of exemption are you looking for?Are you interested in a general exemption for a specific type of good or service, or a specific exemption based on your situation?
3. In which state in India are you located?Different states may have different exemptions or application procedures.

Once I have this information, I can provide you with a more accurate and relevant explanation of the process for claiming an exemption from the CGST or IGST tax in your specific state in GST Act, 2017.

                                                                FAQ QUESTION

1. The Goods and Services Tax (GST) Act, 2017, empowers the government to grant exemptions from the tax under two main provisions:

Section 11 of the CGST Act and Section 6 of the IGST Act both deal with exemption from tax, but with slightly different procedures GST Act, 2017

2. Section 11 of the CGST Act (General Exemptions):

• Allows for general exemptionson certain goods or services or both, applicable across the country.
• These exemptions can be granted for the entire tax or a part of it GST Act, 2017.
• The government issues notifications specifying the exempted goods or services and any conditions attached to the exemption.
• Registered persons supplying exempted goods or services cannot collect any taxon such supplies.
  3. Section 6 of the IGST Act (Special Exemptions):
• Allows for special exemptionsin individual cases under exceptional circumstances.
• This provision is intended for situations where a general exemption is not suitable or feasible GST Act, 2017.
• The government grants such exemptions through special ordersfor each case, stating the specific reasons for the exemption.
• The special order may exempt the entire tax or a part of it on specific goods or services.

4. Eligibility for exemption:

• The government’s decision to grant exemptions is based on factors like public interest, promotion of specific industries, affordability of goods or services GST Act, 2017 for certain sections of society, etc.
• Specific notifications or special orders outlining the exempted goods, services, conditions, and effective dates are published for public awareness.

5. Important points to remember:

• The power to grant exemptions lies with the government, and not with individual taxpayers.
• Exemptions are subject to change based on government notifications and orders.
• Claiming an exemption that you are not entitled to can lead to penalties GST Act, 2017.

CASE LAWS

The Goods and Services GST Tax Act, 2017 empowers the government to grant exemptions from the tax through two main provisions:

• Section 11 of the Central Goods and Services Tax Act (CGST Act):This section allows the government to issue notifications exempting specific goods or services (or both) from the whole or part of the CGST and SGST (State Goods and Services Tax) leviable on them. This power can be exercised either generally (for all taxpayers) or conditionally (subject to certain conditions).
• Section 6 of the Integrated Goods and Services Tax Act (IGST Act):This section deals with exemptions on interstate supplies. Similar to Section 11 of the CGST Act, it allows the government to exempt goods or services (or both) from the whole or part of the IGST leviable on them, either generally or conditionally. Additionally, it also allows for special orders exempting specific supplies in exceptional circumstances.

Case Laws Relevant to Exemption Powers:

• Union of India & Ors. v. M/s. Pratibha Industries Ltd. [Civil Appeal No. 4810 of 2021]:This Supreme Court judgment clarified that the exemption notification issued under Section 11 cannot override the definition of “supply” under the GST Act. In this case, the supply of alcoholic liquor, even for industrial use, was not considered a “supply” and hence ineligible for exemption.
• ADVANCE RULING ORDER NO 22/WBAAR/2022-23, dated 09th February, 2023:This ruling by the West Bengal Authority for Advance Rulings held that the sale of alcoholic liquor for human consumption cannot be exempted under Section 11 (CGST) or Section 6 (IGST), as it falls outside the definition of “supply” and “non-taxable supply” under the GST Act 2017.
• M/s. Hindustan Unilever Ltd. v. Union of India & Ors. [W.P. No. 3906 of 2017]:This Delhi High Court case dealt with the scope of “public interest” under Section 11 of the CGST Act. The court held that the government must consider the impact of exemptions on revenue and other relevant factors before issuing notifications GST Act, 2017.

Insights into Gaining Exemption:

• Exemptions under Sections 11 (CGST) and 6 (IGST) are based on the government’s discretion and public interest considerations.
• To get exempted, you need to fall within the scope of a specific notification issued by the government or seek a special order in exceptional circumstances.
• Case laws play a crucial role in interpreting the exemption provisions and clarifying their scope.
• It’s essential to consult a tax professional to understand your eligibility for exemption and the procedures involved GST Act, 2017