Section 11 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Every exemption in GST comes from one of three sub-sections, and they behave differently: one is general, one is individual, and one reaches backwards in time.
Section 11(1) — exemption by notification, in the public interest, on the Council's recommendation, absolute or conditional, for the whole or part of the tax, effective from the date specified. Section 11(2) — exemption by special order in each case, in the public interest, on the Council's recommendation, stating circumstances of an exceptional nature, and only wholly. Section 11(3) — an explanation inserted by notification within one year of a notification or order, to clarify its scope, with retrospective effect. Section 6 of the IGST Act mirrors section 11 for integrated tax.
Section 11(1): the six conditions
The Handbook lists them:
- the exemption should be in public interest;
- it must be by notification, on the recommendation of the GST Council;
- it may be for any goods or services or both;
- it may be absolute or conditional;
- it may be for the whole or any part of the tax leviable; and
- it comes into force on a date specified in the notification.
"Absolute or conditional" is not decorative. The Explanation to section 11 provides that where an absolute exemption from the whole or part of the tax is granted, the registered person shall not collect tax in excess of the effective rate. As the Handbook puts it: "It provides a mandatory requirement to follow absolute exemptions."
And "whole or part" is what makes a partial exemption possible. Several of the notifications below exempt tax in excess of a specified rate — 2.5%, 0.05%, 0.1% — which is a partial exemption operating as a concessional rate.
The notifications issued under section 11(1) and section 6(1)
The Handbook tabulates them, and the list is worth carrying because most people know only two of them:
| Subject | CGST | IGST |
|---|---|---|
| Exemption to supplies of goods | 02/2017-CT(R) | 02/2017-IT(R) |
| Goods for petroleum operations under exploration licences, in excess of 2.5% | 03/2017-CT(R) | 03/2017-IT(R) |
| Supplies by CSD or unit run canteens to specified recipients | 07/2017-CT(R) | 07/2017-IT(R) |
| RCM on supplies from unregistered persons up to ₹5,000 a day | 08/2017-CT(R) | — |
| RCM supplies to a tax deductor by an unregistered supplier, where the deductor is not otherwise liable to register | 09/2017-CT(R) | — |
| Second-hand goods bought from unregistered persons, where the dealer pays under rule 32(5) | 10/2017-CT(R) | — |
| Exemption to supply of services | 12/2017-CT(R) | 09/2017-IT(R) |
| Heavy water and nuclear fuels by DAE to NPCIL | 26/2017-CT(R) | 26/2017-IT(R) |
| Inter-State supply of skimmed milk powder or concentrated milk | — | 30/2017-IT(R) |
| RCM from unregistered suppliers, extended without threshold (later rescinded) | 38/2017-CT(R) | 32/2017-IT(R) |
| Merchant export supplies in excess of 0.05% CGST / 0.1% IGST | 40/2017-CT(R) | 41/2017-IT(R) |
| Scientific and technical equipment to public funded research institutions, in excess of 2.5% | 45/2017-CT(R) | 47/2017-IT(R) |
| Central Government's share of profit petroleum | 05/2018-CT(R) | 05/2018-IT(R) |
| IGST on royalty and licence fee already in customs value | — | 06/2018-IT(R) |
| Gold supplied by nominated agencies to registered persons | 26/2018-CT(R) | 27/2018-IT(R) |
| Hiring of electric buses by local authorities | 13/2019-CT(R) | 13/2019-IT(R) |
| Goods for specified FAO projects | 19/2019-CT(R) | 19/2019-IT(R) |
Two of these are structural rather than sectoral. 08/2017 and 38/2017 were the reverse-charge reliefs that went when section 9(4) was recast on 01.02.2019; 09/2017 still relieves a TDS-only deductor from section 9(4) reverse charge, provided it is not liable to register otherwise than under section 24(vi).
And note the supersession that post-dates the Handbook. The goods exemption notification 02/2017-CT(R) was superseded by Notification No. 10/2025-Central Tax (Rate) dated 17.09.2025; the services exemption notification 12/2017-CT(R) continues as amended.
Section 11(2): the special order
"Exemptions are by way of special order in each case and on the recommendations of GST Council. Order should mention the circumstances of exceptional nature. Exemption to any goods or services or both from payment of tax wholly."
Three differences from 11(1). It is case-by-case, it requires exceptional circumstances to be stated, and it can only exempt wholly — there is no partial special order.
Section 11(3): the retrospective explanation
The power, as the Handbook sets it out: the Government may, with a view to explain the scope of a notification or order, insert an explanation, for the purpose of clarifying scope or applicability, by notification, within one year of issue of the notification or order — "such notification shall have retrospective effect."
Three limits are built in. The instrument must be an explanation; its purpose must be clarification of scope, not alteration; and it must come within one year.
The one-year fence is the real constraint. An explanation issued later cannot claim section 11(3) retrospectivity, and would have to rest on ordinary legislative competence. Retrospective exemption and past periods →
The effective date, and a gap in the law
"The effective date of the notification would be the date mentioned in the notification as per section 11(1). However, GST law does not have any provision in cases where no date is mentioned in the notification."
The Handbook fills the gap by analogy with section 5A of the Central Excise Act, 1944, under which, unless otherwise provided, the effective date is "the date of its issue for publication in the official gazette" or "the date on which it is made available on the official website of the Government Department."
That is a reasoned analogy, not a provision of GST law — which is why every operative notification specifies its own date.
Key takeaways
- Section 11(1) — by notification, in the public interest, on the Council's recommendation, absolute or conditional, whole or part.
- The Explanation to section 11 makes an absolute exemption compulsory — no collection above the effective rate.
- Section 11(2) — a special order, case by case, on exceptional circumstances, and only wholly.
- Section 11(3) — a clarificatory explanation within one year, retrospective in effect.
- Section 6 of the IGST Act mirrors section 11.
- The exemption notifications run well beyond 2/2017 and 12/2017 — petroleum operations, CSD canteens, second-hand goods, merchant exports, research equipment, gold, electric buses and FAO projects.
- 2/2017-CT(R) was superseded by 10/2025-CT(R) on 17.09.2025; 12/2017-CT(R) continues as amended.
- GST has no default effective date where a notification omits one.
Read next
- Exemption Notifications: Which Act They Cross Over To
- Retrospective Exemption, and What It Does to Past Periods
- Strict Construction, and the Burden of Proving an Exemption
Disclaimer: Positions stated as on 5 September 2026, based on section 11 of the CGST Act, 2017 and section 6 of the IGST Act, 2017, and the notifications listed above, as reproduced in the ICAI Handbook on Exempted Supplies under GST (April 2025), read with Notification No. 10/2025-Central Tax (Rate) dated 17 September 2025 which superseded Notification No. 2/2017-Central Tax (Rate).