Section
11. Power to grant Exemption.-
(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 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.
