This is because exemption is sought to be extended only to a small sub-set of goods coming within that HSN heading.
(ICAI FAQ PUBLICATION 06-09-2017 EXEMPTION ON SUPPLY OF GOODS : FAQ NO. 23)
Is alcohol (human consumption) an exempt good
Yes, alcohol is an exempt good though it is not leviable to tax. It is required to treat all non-leviable goods and leviable-but-non-taxable goods to be classified as exempt goods in order to restrict input tax credit.
(ICAI FAQ PUBLICATION 06-09-2017 EXEMPTION ON SUPPLY OF GOODS: FAQ NO. 22)
Petrol is exempt good or non-taxable good
Five petroleum products i.e., petroleum crude, high speed diesel, motor spirit, natural gas and aviation turbine fuel are excluded from levy for the time being and as such petrol is non-taxable good.
(ICAI FAQ PUBLICATION 06-09-2017 EXEMPTION FROM SUPPLY OF GOODS: FAQ NO. 21)
Is supply of exempt goods considered taxable or non-taxable supply
Supply of exempt goods is considered non-taxable so that such supplies do not trigger registration, claim for input tax credit and other relevant provisions. But existence of exemption itself indicates that there was a levy of tax but the exemption granted.
(ICAI FAQ PUBLICATIONS 06-09-2017 EXEMPTION ON SUPPLY OF GOODS: FAQ NO. 20)
Does value reduction allowed in the CGST Rules amount to exemption? Whether it affect ITC u/s 17(2)
Valuation adjustments prescribed either in the CGST Rules or in any Rate Notification will not affect ITC because ITC adjustment is only possible under section 17(2).
(ICAI FAQ PUBLICATIONS 06-09-2017 EXEMPTIONS: FAQ NO. 19)
Why GST rate is first notified and then another notification issued granting exemption
Rate of GST is required to prescribe the applicable tax and then exemption would be to render the tax inapplicable in certain specific circumstances.
(ICAI FAQ PUBLICATIONS 06-09-2017 EXEMPTIONS: FAQ NO. 18)
Where is the entire scope of an entry provided in detail
Scope of an entry is to be found by referring to First Schedule to the Customs Tariff Act in case of goods and Service Classification Scheme in case of services.
(ICAI FAQ PUBLICATIONS 06-09-2017 EXEMPTIONS : FAQ NO. 17)
Are words used in exemption notification exactly the same as used in schedules to notification 1/2017
No, they are not exactly same. The words used in exemption notification may be understood as ‘equal to or less than’ (but never ‘more than’) the words in the schedules to notification.
(ICAI FAQ NOTIFICATION 06-09-2017 EXEMPTIONS: FAQ NO. 16)
Where do we find exemption for high sea sales
There is no exemption that is specifically issued for high sea sales. All import of goods are liable to IGST not under section 5(1) but under the proviso which takes imported goods into the Customs Act for determination of the liability. And ‘the point’ at which customs duties are levied is when bill of entry for home consumption is filed. In case of high sea sales, such a bill of entry is filed only by the final recipient (high sea buyer).
(ICAI FAQ PUBLICATIONS 06-09-2017 EXEMPTIONS: FAQ NO. 15)
How to interpret meaning of an article in an exemption notification
An article in an exemption notification may be interpreted by reference to the Rules of Interpretation of Customs Tariff if the notification permits. If not, the article must be interpreted based on non-statutory principle emanating from judicial decisions.
(ICAI FAQ PUBLICATIONS 06-09-2017 EXEMPTIONS: FAQ NO. 14)