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Section11
The Central Goods and Services Tax Act, 2017

Power to grant exemption from tax

In force Act 12 of 2017 As on 16 Oct 2026

Act 12 of 2017 Ministry Finance Enacted 12 Apr 2017 Cited by 4 provisions Instruments 40

Commencement. 22nd June, 2017 for sections 1, 2, 3, 4, 5, 10, 22, 23, 24, 25, 26, 27, 28, 29, 30, 139, 146 and 164 1st July, 2017 for sections 6 to 9, 11 to 21, 31 to 41, 42 (except proviso to sub-section (9) of S 42), 43 (except proviso to subsection (9) of S 43), 44 to 50, 53 to 138, 140 to 163, 165 to 174.

Section 11 of the Central Goods and Services Tax Act, 2017 deals with power to grant exemption from tax. 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 descriptio The Act was enacted on 12 Apr 2017.

(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 subsection (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.

Section 11, The Central Goods and Services Tax Act, 2017 (Act 12 of 2017).

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

Referred to by 4

  1. s. 2 Definitions
  2. Finance Act, 2019 (No. 2) s. 113 Amendment of notification number G.S.R. 674(E) issued under sub-section (1) of section 11 of Central Goods and Services Tax Act, retrospectively
  3. Finance Act, 2024 (No. 2) s. 116 Insertion of new section 11A
  4. Meghalaya Goods and Services Tax Act, 2017 (Act No. 10 of 2017) s. 11 Power to grant exemption from tax

Related judgements & precedents

These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.

  1. Hero Motocorp LTD vs Union of India

    Supreme Court of India 17 Oct 2022 Binding (SC) Reportable

    Court's Decision & Legal Precedent

    The doctrine of promissory estoppel cannot operate against the legislative functions of the State. When the legislature enacts a statute that specifically provides for rescinding benefits granted under an earlier statute, the earlier representation or promise made by the Government cannot be enforced against the State through the doctrine of promissory estoppel. This principle applies even when the Government had made an unequivocal representation on which entities had relied and altered their position to their detriment. The only exception to this principle is where it is necessary to prevent fraud or manifest injustice. Furthermore, when a change in policy is in the larger public interest, the State cannot be prevented from withdrawing an incentive which it had granted through an earlier notification. In the present case, the rescission of tax exemption notifications through Notification No. 21/2017 pursuant to the statutory mandate of Section 174(2)(c) of the CGST Act cannot be challenged on the basis of promissory estoppel, as the GST regime represents a material change in circumstances and a sea change in the taxation system from origin-based to destination-based taxation, which is in the larger public interest.

    On this section: Provides discretion to Central Government to grant exemption from tax on recommendations of GST Council; Court held that this discretion cannot be compelled through mandamus and is matter of policy

    Read the full order on eCourts India

The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.

Judgments citing this section

These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.

  1. High Court 22 Nov 2024 DLHC010384432022

    … The petitioners aver that on 26 July 2018 the Ministry of Finance, in exercise of powers conferred under Section 11 of the Central Goods and Services Tax Act, 2017<sup>10</sup> issued Notification No. 21/2018, which exempted the intra-state supply of handicraft goods from tax. Amongst the various goods which came to be included in that Notification were those which would be classifiable under CTH 6802 and ITC(HS) 68159990. …

    Read this order on eCourtsIndia

  2. High Court 22 Nov 2024 DLHC010477952022

    … The petitioners aver that on 26 July 2018 the Ministry of Finance, in exercise of powers conferred under Section 11 of the Central Goods and Services Tax Act, 2017<sup>10</sup> issued Notification No. 21/2018, which exempted the intra-state supply of handicraft goods from tax. Amongst the various goods which came to be included in that Notification were those which would be classifiable under CTH 6802 and ITC(HS) 68159990. …

    Read this order on eCourtsIndia

Made under this section, and citing it

40 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.

All subordinate legislation

Questions about Section 11

What have the courts held on Section 11 of the Central Goods and Services Tax Act?

Hero Motocorp LTD vs Union of India (17 Oct 2022) is the leading judgment on this section among those set out below: Provides discretion to Central Government to grant exemption from tax on recommendations of GST Council; Court held that this discretion cannot be compelled through mandamus and is matter of policy.

How do I find court cases under Section 11 of the Central Goods and Services Tax Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: CGST Act 11, section 11 CGST Act, section 11 of the Central Goods and Services Tax Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Hero Motocorp LTD vs Union of India (17 Oct 2022).

What should I read with Section 11 of the Central Goods and Services Tax Act, and has it changed?

4 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there are 40: most recently Notification No. 02/2020-Central Tax (Rate) dated 26.03.2020 (2020), then Notification no. 02-2020 Rate (2020), and 38 more.

When was Section 11 of the Central Goods and Services Tax Act enacted?

Section 11 of the Central Goods and Services Tax Act, cited as CGST Act 11, was enacted on 12 Apr 2017 as Act 12 of 2017. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 16 Oct 2026. This page is not a substitute for legal advice.