Section 11A of GST Act: Power not to recover GST

Amended and updated notes on section 11A of CGST Act, 2017. Power not to recover Goods and Services Tax not levied or short-levied as a result of general practice.

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Amended and updated notes on section 11A of CGST Act, 2017. Detail discussion on provisions and rules related to Power not to recover Goods and Services Tax not levied or short-levied as a result of general practice.

Chapter III (Sections 7-11A) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to levy and collection of tax. Section 11A of CGST 2017 provides for Power not to recover Goods and Services Tax not levied or short-levied as a result of general practice.

Recently, we have discussed in detail section 11 (Power to grant Exemption) of CGST Act 2017. Today, we learn the provisions of section 11A of Central GST Act 2017.

Section 11A of the Central Goods and Services Tax Act, 2017 has been inserted by the Finance (No. 2) Act, 2024.

Name of ActThe Central Goods and Services Tax Act 2017
Enacted byParliament of India
Administered byCentral Board of Indirect Taxes & Customs
Governing bodyGST Council
Number of Chapters21
Number of Sections174
You are reading:
Chapter No.III
Chapter NameLevy and Collection of Tax
Section No.11A
Section NamePower not to recover Goods and Services Tax not levied or short-levied as a result of general practice
Updated 2025 EditionGST Law Book PDF

Section 11A of Central GST – Power not to recover Goods and Services Tax not levied or short-levied as a result of general practice1

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.

Notes on GST Section 11A:

Section 11A provides a mechanism for the government to offer relief in situations where a widely accepted practice has resulted in the non-levy or short-levy of GST, ensuring that businesses are not unduly penalized for following such practices.

General Prevalence of Practice: If the government determines that a certain practice regarding the levy of central tax on specific supplies was or is commonly followed, leading to non-levy or short-levy of GST.

Government’s Authority: Upon such determination and based on the Council’s recommendation, the government can issue a notification in the Official Gazette directing that the GST payable on such supplies, or any excess GST due to the prevalent practice, shall not be required to be paid.

This means that if businesses have been following a common practice that resulted in non-levy or short-levy of GST, the government can choose not to recover the unpaid tax for those specific cases. However, it’s important to note that this power is intended for exceptional situations and is not meant to be applied routinely.

  1. Section 11A of CGST Act 2017 inserted by the Finance (No. 2) Act, 2024 and shall come into force on 01.11.2024 vide Notification No. 17/2024-Central Tax, S.O. 4253(E), dated 27.09.2024. ↩︎


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