Tax exemption power: government may exempt goods or services on Council recommendation, with conditional and clarifying mechanisms. The State Government, on Council recommendations and in the public interest, may by notification grant general exemptions - absolute or conditional - for specified goods or services, or by special order exempt in individual exceptional cases; it may issue explanations within one year that take effect as part of the original notification or order, and Central notifications or orders on Council recommendations are deemed to operate under this Act, with suppliers barred from collecting tax above the effective rate where an absolute exemption is granted.