Section 11
Section 11 of the CGST Act, 2017 – Power to Grant GST Exemption
What does Section 11 say?
The Government has the power to exempt certain goods or services from GST, either fully or partially, if it is considered necessary in the public interest. The exemption can be granted based on the recommendations of the GST Council.
Types of Exemptions
1. General Exemption
The Government may issue a notification exempting specific goods or services from GST for everyone.
Example:
Basic healthcare services provided by hospitals are exempt from GST.
2. Special Exemption
In exceptional circumstances, the Government may exempt GST for a specific person, class of persons, or specific transactions through a special order.
Example:
Relief material imported during a natural disaster may be exempted from GST.
Important Points
- Exemption can be full (100%) or partial. Exemptions are generally issued through GST Notifications. Conditions may be attached to claim the exemption. If a supply is exempt, generally Input Tax Credit (ITC) related to such exempt supply cannot be claimed.
Simple Example
Suppose GST on a product is 18%.
|
Particulars |
Without Exemption |
With Exemption |
|
Product Value |
₹10,000 |
₹10,000 |
|
GST @18% |
₹1,800 |
Nil |
|
Amount Payable |
₹11,800 |
₹10,000 |
Section 11 vs Section 9
|
Basis |
Section 9 |
Section 11 |
|
Purpose |
Levy and collection of GST |
Exemption from GST |
|
Effect |
Creates GST liability |
Removes or reduces GST liability |
|
Power |
Charges GST on supplies |
Exempts supplies from GST |
|
Issued Through |
CGST Act provisions |
Government Notifications/Orders |
One-Line Summary
Section 9 imposes GST, whereas Section 11 empowers the Government to exempt certain goods or services from GST when required in the public interest.
The content provided in this article is intended solely for educational and informational purposes and should not be construed as professional accounting, taxation, legal, or financial advice. Readers are advised to consult a qualified professional before making any financial, tax, legal, or business decisions based on the information contained herein.Disclaimer