Section 6 IGST Act - Power to Grant Exemption from Tax
Section 6 of the Integrated Goods and Services Tax Act, 2017 empowers the Central Government, acting on the recommendations of the GST Council and in the public interest, to grant exemption from integrated tax on specified goods or services or both.
Updated and reviewed: 27 September 2026
Section 6 of the Integrated Goods and Services Tax Act, 2017
(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.
Meaning and scope of Section 6
The provision is the statutory source of the Central Government's power to grant exemptions from integrated tax. The power is not framed as an unrestricted administrative discretion: the section expressly connects a general exemption to public interest, the recommendations of the GST Council, and a notification specifying the covered goods, services or both, the extent of exemption, applicable conditions and effective date.
An exemption may be absolute, meaning that it applies without an option to charge tax contrary to the exemption, or it may be conditional, meaning that the benefit depends on compliance with the conditions stated in the relevant notification. The precise legal effect therefore depends on the wording, effective date, entries, conditions and amendments of the applicable exemption notification.
Sub-sections explained
Section 6(1): General exemption by notification
Sub-section (1) authorises a general exemption for a specified description of goods or services or both. The exemption may cover the whole tax or only part of it, may be absolute or conditional, and operates from the date stated in the notification.
Section 6(2): Special exemption in exceptional cases
Sub-section (2) deals with individual or case-specific relief. A special order must concern circumstances of an exceptional nature, and those circumstances are to be stated in the order. The statutory requirements of public interest and GST Council recommendation also apply.
Section 6(3): Clarification by Explanation
Sub-section (3) enables the Government to clarify the scope or applicability of an exemption notification or special order by inserting an Explanation. The provision states that this may be done within one year from the issue of the original notification or order and gives such an Explanation effect as though it had always formed part of that notification or order.
Explanation: Tax cannot be collected above the effective rate
Where an exemption is granted absolutely, a registered supplier cannot collect tax in excess of the effective rate applicable after giving effect to that exemption. This prevents a supplier from treating an absolute exemption merely as an optional concession while charging a higher amount of tax to the recipient.
Practical points when checking an IGST exemption
- Identify the exact goods or services and the relevant tariff, classification or description used in the notification.
- Check whether the exemption is full or partial and whether it is absolute or subject to conditions.
- Verify the effective date and all later amendments, explanations or rescinding notifications.
- For conditional exemptions, confirm that every prescribed condition is satisfied for the relevant supply.
- Use the current official notification text before relying on an exemption for tax treatment or compliance.
Related IGST Act provisions
Section 5 - Levy and collection of tax | Section 7 - Inter-State supply | Section 8 - Intra-State supply | Section 9 - Supplies in territorial waters