Exemption is not a choice but mandatory as explanation to Section 11 of the CGST Act, 2017 states that for the purpose of this section, where an exemption in respect of any goods or services or both from the whole or part of the tax leviable thereon has been granted absolutely, the registered person supplying such goods or services or both shall not collect the tax, in excess of the effective rate, on such supply of goods or services or both. Thus, no GST is chargeable under the Act on exempted supply and supplier would need to discharge collected tax in cash. However, Section 16 of the CGST Act, 2017 uses the term ‘charged’ and not ‘chargeable’. Thus, in such cases, the recipient shall be allowed Input Tax Credit charged on such exempted supplies as test of taxability is not in the hands of recipient.