SECTION 11 OF THE CENTRAL GST ACT, 2017 – POWER TO GRANT EXEMPTION FROM TAX – CGST EXEMPT SERVICES (NIL RATED SERVICES) – AMENDMENT IN NOTIFICATION NO.12/2017-CENTRAL TAX (RATE), DATED 28-6-2017

NOTIFICATION NO.23/2018-CENTRAL TAX (RATE), DATED 20-9-2018

In exercise of the powers conferred by sub-section (3) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary so to do for the purpose of clarifying the scope and applicability of the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No.12/2017- Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 691(E), dated the 28th June, 2017, hereby inserts the following Explanation in the said notification, in the Table, against serial number 41, in column (3), namely:—

“Explanation.- For the purpose of this exemption, the Central Government, State Government or Union territory shall have 50 per cent or more ownership in the entity directly or through an entity which is wholly owned by the Central Government, State Government or Union territory.”.