Section 6 is the exemption power that sits alongside the charge in section 5. It works in three ways — a general notification, a special order for an exceptional case, and a clarifying Explanation added within a year — and ends with a rule against collecting tax on absolutely exempt supplies.
Key points
- Section 6(1) of the IGST Act, 2017 lets the Government, on the GST Council's recommendation, exempt goods or services generally by notification, absolutely or with conditions, wholly or partly.
- The main IGST exemption notifications are 2/2017-Integrated Tax (Rate) for goods and 9/2017-Integrated Tax (Rate) for services, both dated 28.06.2017.
- Section 6(3) allows a clarifying Explanation to be inserted within one year of the notification or order; it takes effect as if it had always been part of it.
- Where an exemption is absolute, the supplier may not collect tax above the effective rate (Explanation to section 6).
- An ambiguous exemption notification is read in favour of the Revenue, and the burden of bringing a case within it is on the taxpayer — Commissioner of Customs v Dilip Kumar & Co (2018), Constitution Bench.
The provisions
6(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.
- Notif 2/2017-IT(R) — goods
- Notif 9/2017-IT(R) — 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 customs dispute over an exemption notification led a smaller bench to doubt Sun Export Corporation v Collector of Customs (1997), which had held that an ambiguity in an exemption notification should be resolved in the taxpayer's favour. The question was referred to a Constitution Bench.
- Held
- Exemption notifications are construed strictly. The taxpayer must show that the case falls within the notification; if there is ambiguity, the benefit goes to the Revenue, not the taxpayer. Sun Export and decisions following it were overruled. A charging provision is different: there, ambiguity favours the taxpayer.
- Here
- Every claim under an IGST exemption notification issued under section 6 is read this way: the supplier carries the burden, and doubt is resolved against the exemption.
6(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
A narrower power: exemption by a special order "in each case", only "under circumstances of an exceptional nature" which the order itself must state, again on the Council's recommendation. It is meant for a specific case — a consignment, an event, a body — not a class of supplies. An order that does not state the exceptional circumstances is open to challenge on that ground alone.
6(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
Sub-section (3) lets the Government insert an Explanation into a notification or special order to clarify its scope or applicability, but only within one year of the notification or order. Such an Explanation operates retrospectively — "as if it had always been the part of" the original. It is a power to clarify, not to change: an amendment that narrows an exemption takes effect only from its own date.
The Explanation at the end of the section applies to absolute exemptions: the registered supplier must not collect tax above the effective rate. Where a supply is absolutely exempt, charging IGST on it is not an option open to the supplier.
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 IGST?
- Mainly Notification 2/2017-Integrated Tax (Rate) for goods and Notification 9/2017-Integrated Tax (Rate) for services, issued under section 6(1) of the IGST Act on 28.06.2017 and amended since.
- Can an exemption notification be clarified with retrospective effect?
- Yes, by inserting an Explanation within one year of the notification under section 6(3) of the IGST Act; it then applies as if always part of the notification.
- Can a supplier charge IGST on an absolutely exempt supply?
- No. The Explanation to section 6 bars collecting tax above the effective rate where an exemption is absolute.
- How are GST exemption notifications interpreted?
- Strictly. In Commissioner of Customs v Dilip Kumar & Co (2018) the Constitution Bench held that the taxpayer must prove the exemption applies and any ambiguity is resolved in favour of the Revenue.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
Three conditions: the Government is satisfied that the exemption is necessary in the public interest; the GST Council has recommended it; and it is made by notification. The exemption may be absolute or conditional, from the whole or part of the tax, for goods or services "of any specified description", from a date stated in the notification.
In practice the IGST exemptions sit in two notifications of 28.06.2017, amended many times since: 2/2017-Integrated Tax (Rate) for goods and 9/2017-Integrated Tax (Rate) for services. A partial exemption works by prescribing a lower effective rate than the schedule rate.
Section 11 of the CGST Act is the parallel power for CGST; the CGST and IGST notifications are usually issued together and mirror each other.