Chapter III - Levy and collection of tax
Section 11A
Section 11A: Non-recovery of CGST due to general practice
Section 11A addresses a widespread tax-treatment practice under which CGST was not levied or was levied at a lower amount, although the law otherwise required tax. It allows the Government, on GST Council recommendation, to notify non-recovery for affected supplies.
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Need advice on Section 11A?
This article is for general information. Refer to the Central Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
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.
Introduction
This is a government notification power. A taxpayer cannot invoke section 11A as an automatic waiver merely because similar businesses took the same position; the statutory conditions and the precise notification must be checked.
Key takeaways
General practice is essential
The Government must be satisfied that a generally prevalent practice existed or exists concerning levy or non-levy of central tax on the supply.
There must be a legal shortfall
The supply must otherwise have been liable to CGST or a higher amount of CGST than the amount generally levied.
Relief needs a Gazette notification
On GST Council recommendation, the Government may direct that the whole tax or excess tax need not be paid for supplies covered by that practice. Check the notification's scope and dates.
When the power can be considered
Section 11A looks at a generally prevalent practice for a category of supply, including non-levy. An isolated taxpayer error is not the same factual premise.
What a notification may cover
The Government may direct non-payment of the whole CGST otherwise payable where tax was not levied, or the excess CGST where tax was short-levied under the general practice. The actual notification controls the covered supplies and period.
Practical verification
Identify the supply, period, prevailing treatment and legal levy. Locate the relevant official Gazette notification under section 11A, and compare its description and effective period with the transaction. Retain the notification and tax-position records.
Practical checklist
Do
- Find the exact official Gazette notification before claiming non-recovery.
- Match supply description and tax period to the notification.
- Keep evidence of the tax treatment actually followed.
Avoid
- Treat a Council recommendation alone as effective law.
- Assume one business's mistake proves a generally prevalent practice.
- Apply relief beyond the notification's scope or dates.
Frequently asked questions
Is section 11A an automatic GST exemption?
No. It empowers the Government to issue a notification after the statutory conditions are met and the Council recommends it.
Can it address short levy as well as non-levy?
Yes. The section covers both where a general practice caused tax not to be levied and where a lower amount was levied.
Need help applying this provision to your situation?
Contact BizeneedLast updated 9 October 2026