GST exemption powers allow general or special notifications, retrospective clarification, and limits on tax collection for absolute exemptions.

Government may, on the recommendations of the Council and in the public interest, exempt specified goods or services from GST by general notification or by special order in exceptional cases. It may also issue an Explanation within one year to clarify the scope or applicability of the exemption, and the Explanation operates retrospectively as part of the original notification or order. Where the exemption is absolute, the registered supplier must not collect tax in excess of the effective rate on the exempt supply.

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