GST Rates & Classification

Power to grant Exemption

Section 11, CGST Act

Chapter 3 Text as on 2026-09-05 Source CBIC

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Section 11 lets the Government grant EXEMPTIONS from GST by notification (wholly or partly, absolutely or conditionally) or by special order in the public interest, and issue clarifying explanations.

What this means in practice

The parts that actually decide cases — the things a practitioner checks first.

1

An exemption notification is strictly construed; the burden of showing that a supply falls within it is on the taxpayer.

2

Absolute exemptions are compulsory – a taxpayer cannot choose to pay tax and pass on credit where the exemption is unconditional.

3

The main services exemption is Notification 12/2017-Central Tax (Rate) and the goods exemption is now 10/2025-CTR; always check the exemption before applying a rate.

How this provision is built

The skeleton, clause by clause — useful when a notice cites a specific sub-clause.

(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…
(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 sta…
(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…

The exact words of the law

1,713 characters, unedited

Reproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.

Read the full provision+
* Section 11. Power to grant Exemption.-

(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 .- For the purposes of this section, where an exemption in respect of any goods or services or both from the whole or part of the tax leviable thereon has been granted absolutely, the registered person supplying such goods or services or both shall not collect the tax, in excess of the effective rate, on such supply of goods or services or both.

What changed, and when

The amendment trail, newest first — because the version that applies to your case depends on the period.

2017-07-01 · Commenced

Provision as originally enacted in the CGST Act, 2017 (Act 12 of 2017) and brought into force w.e.f. 01-07-2017.

Where this comes from

Text reproduced from the Central Board of Indirect Taxes and Customs, as available on 2026-09-05. The explanation and practice notes above are GSTZone’s own, written for this hub. If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.

gst exemption powersection 11exemption notification

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