Chapter III - Levy and collection of tax
Section 11
Section 11: Power to grant exemption from tax
Section 11 allows the Government, on GST Council recommendation and in the public interest, to grant CGST exemptions. A business must read the actual notification or special order: the section itself does not list exempt goods or services.
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Need advice on Section 11?
This article is for general information. Refer to the Central Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(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.
Introduction
An exemption may be absolute or conditional and may cover all or part of the central tax. Section 11(1) governs general notifications; subsection (2) permits a special order in an exceptional individual case. The legal effect depends on the exact description, conditions and date in the instrument.
Key takeaways
General exemption requires a notification
The Government may specify goods or services and exempt the whole or part of CGST, absolutely or subject to stated conditions, from the stated effective date.
Exceptional case orders are separate
A special order under subsection (2) must state exceptional circumstances and applies to the case covered by that order.
An absolute exemption limits tax collection
The explanation to section 11 prevents a registered supplier from collecting tax above the effective rate where the exemption is absolute.
Clarifying explanations can operate from the start
Subsection (3) permits a clarifying explanation within one year; it is treated as part of the original notification or order.
Read the correct instrument
Locate the current Central Tax (Rate) or other relevant official notification, its amendments and effective date. Check the description, any classification code, recipient/supplier conditions and whether exemption is absolute or conditional.
General notification versus special order
A general notification under section 11(1) can cover a defined class of supplies. A section 11(2) special order addresses an exceptional case, with circumstances stated in that order. Do not apply another person's special order as a general exemption.
Invoice and collection consequences
Where the exemption is absolute, the supplier cannot collect tax above the effective rate. Conditional exemptions require proof that every applicable condition was met for the transaction and period.
Practical checklist
Do
- Save the current official exemption notification and amendment history.
- Match classification, description and all stated conditions.
- Check the corresponding SGST, UTGST or IGST position separately.
Avoid
- Treat a GST Council recommendation as an exemption before notification.
- Apply an individual special order to unrelated taxpayers.
- Collect CGST above the effective rate under an absolute exemption.
Frequently asked questions
Does section 11 itself list exempt goods?
No. The applicable notification or special order identifies them.
Can an exemption be subject to conditions?
Yes. Section 11(1) expressly permits an absolute or conditional general exemption.
Need help applying this provision to your situation?
Contact BizeneedLast updated 9 October 2026