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<h1>Tax exemption power: Central Government may exempt inter State supplies on Council recommendation, via notifications or special orders.</h1> The Central Government, on the recommendation of the Council, may extend intra State exemptions to inter State supplies or, by notification, exempt inter State supplies generally-absolutely or subject to conditions-from whole or part of the tax; absolute exemptions relieve the taxable person of tax payment. It may also grant case specific exemptions by special order for exceptional circumstances, insert explanatory clarifications within one year with retrospective effect, and must specify commencement and publish notifications and orders on the departmental website.
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