[TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
Notification No.2/2017-Central Tax (Rate)
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts intra-State supplies of goods, the description of which is specified in column (3) of the Schedule appended to this notification, falling under the tariff item, subheading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Schedule, from the whole of the central tax leviable thereon under section 9 of the Central Good and Services Tax Act, 2017 (12 of 2017).
Section 11 (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.
Analysis- 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 – Now what is absolute / conditional exemption….
Absolute exemption– Complete exemption such as services by way of renting of residential dwelling for use as residence.
- Services by Reserve Bank of India.
- Services by way of transfer of a going concern, as a whole or an independent part thereof Notification No. 12/2017 – Central Tax (Rate) dt. 28.06.2017
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