Section 11 is the CGST exemption power, the counterpart of section 6 of the IGST Act. Exemptions are made in the Government's notifications on the Council's recommendation, and they are read strictly against the taxpayer claiming them.
Key points
- Section 11(1) of the CGST Act, 2017 lets the Government, on the GST Council's recommendation, exempt goods or services generally by notification, absolutely or conditionally, wholly or partly.
- The main CGST exemption notifications are 2/2017-Central Tax (Rate) for goods and 12/2017-Central Tax (Rate) for services, both dated 28.06.2017.
- A clarifying Explanation may be inserted within one year and operates as if always part of the notification (section 11(3)).
- On an absolutely exempt supply, the supplier must not collect tax above the effective rate (Explanation).
- Under Commissioner of Customs v Dilip Kumar & Co (2018), an exemption notification is construed strictly, and ambiguity is resolved in favour of the Revenue.
The provisions
11(1)General exemption by notification
Statutory text
(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.
*Enforced w.e.f. 1st July 2017.
- Notification 2/2017-Central Tax (Rate) — goods
- Notification 12/2017-Central Tax (Rate) — services
Case on this provision
Commissioner of Customs (Import), Mumbai v Dilip Kumar & Company
(2018) 9 SCC 1 · 30.07.2018 · Supreme Court, Constitution Bench (5 Judges)
- Facts
- A reference to a Constitution Bench questioned Sun Export Corporation v Collector of Customs (1997), which had resolved ambiguity in an exemption notification in the taxpayer's favour.
- Held
- Exemption notifications are construed strictly; the burden of showing that a case falls within the exemption is on the taxpayer; ambiguity is resolved in favour of the Revenue. Sun Export was overruled.
- Here
- Governs every claim under an exemption notification issued under section 11.
11(2)Special order in an exceptional case
Statutory text
(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.
What it means
Exemption of a specific case by special order, only in circumstances of an exceptional nature that the order itself must state.
11(3)Clarifying Explanations; no tax above the effective rate
Statutory text
(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 it means
An Explanation clarifying the scope of a notification or order may be inserted within one year and applies as if always part of it — a power to clarify, not to narrow retrospectively.
The Explanation to the section bars a supplier from collecting tax above the effective rate on an absolutely exempt supply.
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- Which notifications exempt supplies from CGST?
- Mainly Notification 2/2017-Central Tax (Rate) for goods and Notification 12/2017-Central Tax (Rate) for services, issued under section 11(1) and amended since.
- How are GST exemption notifications interpreted?
- Strictly: the taxpayer must show the exemption applies, and ambiguity favours the Revenue (Dilip Kumar, Constitution Bench, 2018).
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
Public interest, the Council's recommendation and a notification are all required. Partial exemptions are how many concessional rates are given effect.