What does Section 11A of the CGST Act, 2017 provide?

Section 11A empowers the Government, when satisfied about a generally prevalent practice regarding levy or non-levy of central tax on supplies, to direct by notification that the central tax not levied, or short-levied due to such practice, shall not be required to be paid.

When was Section 11A inserted into the CGST Act, 2017?

Section 11A was inserted by the Finance (No. 2) Act, 2024, with effect from 01.11.2024, as notified by Notification No. 17/2024–Central Tax dated 27.09.2024.

In what situations can the Government issue a notification under Section 11A?

The Government may issue a notification under Section 11A when there is a generally prevalent practice regarding the levy of central tax and the supplies are liable either to central tax where it was not being levied, or to a higher amount of central tax than what was being levied under that practice.

What is the effect of a notification issued under Section 11A on tax recovery?

A notification under Section 11A can direct that the whole or excess central tax payable on such supplies, but for the general practice, shall not be required to be paid in respect of supplies on which central tax was not levied or was short-levied.

Section 11A of CGST Act, 2017 – Power not to recover Goods and Services Tax not levied or short-levied as a result of general practice

August 10, 2017

🖨️ Download PDF The Central Goods and Services Tax Act, 2017 Chapter-III Levy and Collection of Tax Section 11A: Power not to recover Goods and Services Tax not levied or short-levied as a result of general practice. 1[11A. Notwithstanding anything contained in this Act, if the Government is satisfied that— (a) a practice was, or […]

The Central Goods and Services Tax Act, 2017

Chapter-III Levy and Collection of Tax

Section 11A: Power not to recover Goods and Services Tax not levied or short-levied as a result of general practice.

¹[11A. Notwithstanding anything contained in this Act, if the Government is satisfied that—

(a) a practice was, or is, generally prevalent regarding levy of central tax (including non-levy thereof) on any supply of goods or services or both; and

(b) such supplies were, or are, liable to,—

(i) central tax, in cases where according to the said practice, central tax was not, or is not being, levied, or

(ii) a higher amount of central tax than what was, or is being, levied, in accordance with the said practice,

the Government may, on the recommendation of the Council, by notification in the Official Gazette, direct that the whole of the central tax payable on such supplies, or, as the case may be, the central tax in excess of that payable on such supplies, but for the said practice, shall not be required to be paid in respect of the supplies on which the central tax was not, or is not being levied, or was, or is being, short-levied, in accordance with the said practice.]

References

Amendments:

1. Inserted by Finance (No. 2) Act, 2024, w.e.f. 01.11.2024 [Notification No. 17/2024–Central Tax dated 27.09.2024].