Section 11A deals with a familiar problem: an entire trade has been paying no tax, or less tax, on a supply because of a common understanding, and the understanding turns out to be wrong. Rather than demand years of tax from everyone, the Government may — on the Council's recommendation — regularise the past by directing that the tax need not be paid.
Key points
- Section 11A of the CGST Act, 2017, inserted by the Finance (No. 2) Act, 2024 and in force from 01.11.2024, empowers the Government, on the GST Council's recommendation, to direct that central tax not levied or short-levied because of a generally prevalent practice need not be paid.
- Two conditions: a practice was or is generally prevalent regarding the levy (or non-levy) of central tax on a supply, and the supplies were or are in fact liable to tax, or to more tax, than the practice assumed.
- The direction is made by notification in the Official Gazette and overrides the rest of the Act.
The provisions
11AWaiving tax not paid under a general practice
Statutory text
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.]
1. Inserted by section 116 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024.
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
- What does section 11A of the CGST Act do?
- From 01.11.2024 it lets the Government, on the GST Council's recommendation, direct that GST not levied or short-levied because of a general trade practice need not be paid.
- Can a taxpayer claim relief under section 11A on its own?
- No. Relief comes only from a Government notification made on the Council's recommendation.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
The provision mirrors section 11C of the Central Excise Act, 1944 and section 28A of the Customs Act, 1962, which have long allowed the same relief. It is not a power to exempt for the future: it regularises tax "not levied" or "short-levied" in accordance with the practice. Whether the practice was "generally prevalent" is a question of fact for the Government and the Council, not for an individual taxpayer to claim.
It was recommended by the 53rd GST Council meeting (June 2024), inserted by section 116 of the Finance (No. 2) Act, 2024, and brought into force from 01.11.2024 by Notification 17/2024-Central Tax.