Section 11A – Power to Regularise Non-Levy / Short-Levy Due to General Practice
# Section 11A of CGST Act, 2017 – Power Not to Recover Non-Levied / Short-Levied GST
Section 11A empowers the Government to regularise past non-levy or short-levy of GST where industry followed a generally prevalent practice in good faith.
## Conditions to Invoke Section 11A
The Government must be satisfied that:
(a) A practice was, or is, generally prevalent regarding levy of central tax (including non-levy) on any supply; AND
(b) Such supplies were, or are, liable to:
(i) central tax — in cases where, per the practice, central tax was/is not being levied; or
(ii) a higher amount of central tax than what was/is being levied per the practice.
## Action by Government
On the recommendation of the GST Council, by notification in the Official Gazette, the Government may direct that:
The whole of the central tax payable on such supplies (non-levy case); or
The central tax in excess of what was levied per practice (short-levy case)
shall not be required to be paid.
## Why Section 11A Matters
Provides relief to taxpayers who:
Followed industry-wide practice in good faith
Acted as per commonly accepted understanding
Even though the practice may not have been strictly legally accurate
It is effectively a retrospective exemption power.
## Parallel Provision under IGST
Section 6A of the IGST Act, 2017 is the parallel provision for inter-State supplies / IGST.
## Key Features
Begins with "Notwithstanding anything contained in this Act" → overrides other recovery provisions.
Triggered by GST Council recommendation.
Effected via Official Gazette notification.
Worked example
### Example 1
Industry-wide non-levy: Suppose a sector across India did not pay GST on a particular service under a bona-fide interpretation. Subsequently, an SC ruling holds the service taxable. The Government, on Council's recommendation, may issue a Section 11A notification regularising past non-payment, so industry is not asked to pay tax for the past period.
### Example 2
Short-levy correction: Suppliers paid GST at 12% on a supply that was actually liable at 18% as per a clarificatory circular. If 12% was the generally prevalent practice, the Government may regularise the 6% short-levy under Section 11A.
⚠️ Common exam mistakes
Confusing Section 11A (regularisation of past) with Section 11 (general exemption power for future supplies).
Assuming any individual taxpayer's misinterpretation qualifies — the practice must be generally prevalent across the industry.
Forgetting that GST Council recommendation and Gazette notification are mandatory procedural requirements.
Ignoring the parallel Section 6A of IGST Act for inter-State supplies.
Bare-Act text Section 11A · CGST Act, 2017 · click to expand
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.