Clarification on Effective Date for Explanation Inserted in Notification No. 11/2017-CTR
<p>The Ministry of Finance, through Circular No. 120/39/2019-GST, has clarified the effective date of an explanation inserted in Notification No. 11/2017-CTR. This explanation, which excludes activities or transactions by the Government and Local Authority from the term "business," is now confirmed to be effective from 21st September 2017.</p><p><strong>Key Highlights:</strong></p><ul><li><strong>Background:</strong> The GST Council recommended inserting an explanation in Notification No. 11/2017-CTR (Sr. No. 3(vi)) to exclude activities by Government and Local Authorities from the definition of "business" for GST purposes. This was originally implemented via Notification No. 17/2018-CTR, dated 26th July 2018.</li><li><strong>Clarification on Effective Date:</strong> The clarification confirms that the explanation inserted under Section 11(3) of the CGST Act is effective from 21st September 2017, the date when the original entry was made in Notification No. 11/2017-CTR.</li><li><strong>Notification Details:</strong> Although Notification No. 17/2018-CTR stated that it would come into effect on 27th July 2018, the explanation has always been intended to apply retroactively from 21st September 2017, in line with the provisions of the CGST Act.</li></ul><p>This clarification ensures that the concession in GST rates is applied correctly from the original date of the notification, preventing any confusion about its applicability.</p><p><a href="https://cms.plasament.com/storage/chirag-singla/circular-cgst-120.pdf">circular-cgst-120</a><br> </p>