Section 168 of GST Act: Power to issue Instructions or Directions

Explanation of CGST Section 168(1)

Authority of the Board for Uniform Implementation of GST

Under Section 168(1) of the Central Goods and Services Tax (CGST) Act, 2017, the Central Board of Indirect Taxes and Customs (CBIC) has been granted the authority to issue orders, instructions, or directions to central tax officers for ensuring uniform implementation of the GST law across India.

Key Provisions of Section 168(1):

1. Issuance of Orders & Instructions:
   • The CBIC, if deemed necessary or expedient, can issue guidelines in the form of orders, instructions, or directions.
   • These guidelines ensure that GST laws are applied in a consistent and standardized manner across the country.
2. Binding Nature of Instructions:
   • All central tax officers and other personnel involved in implementing the CGST Act are legally required to follow these instructions.
   • This avoids misinterpretation or deviation from the law by individual officers.
3. Purpose of Uniformity:
   • GST is a nationwide tax regime, and Section 168(1) helps in maintaining consistency in tax administration across different states and jurisdictions.
   • It ensures that taxpayers are not subject to varying interpretations of GST provisions by different tax officers.

Examples of Application:

• Clarifications on Tax Rates: If there is confusion regarding GST rates for a particular product/service, the CBIC can issue a circular or notification to clarify the correct tax rate.
• Procedural Guidelines: Instructions may be issued on topics like GST registration, refund processing, or compliance requirements to standardize procedures.
• Anti-evasion Measures: The Board can direct officers on specific steps to prevent tax evasion and improve enforcement.

Legal & Practical Impact:

• Ensures Administrative Efficiency: Tax officers do not have to interpret GST provisions independently; they must follow CBIC guidelines.
• Reduces Litigation: Consistent implementation helps avoid disputes between taxpayers and authorities.
• Enhances Transparency: Publicly available instructions ensure that taxpayers and businesses understand GST policies clearly.

Conclusion:

Section 168(1) of the CGST Act empowers the CBIC to issue binding directions to tax officers to ensure uniform and efficient implementation of GST law. This provision plays a crucial role in preventing misinterpretation, inconsistency, and administrative confusion, ultimately benefiting both the government and taxpayers.

Explanation of CGST Section 168(2)

Section 168(2) of the Central Goods and Services Tax (CGST) Act, 2017 clarifies the designation and authority of the Commissioner for specific sections of the Act. It specifies that the term “Commissioner,” as mentioned in various sections, refers to a Commissioner or a Joint Secretary posted in the Board (Central Board of Indirect Taxes and Customs – CBIC).

This means that when the term “Commissioner” appears in the sections listed, it is not referring to just any Commissioner under GST but a Commissioner or Joint Secretary at the CBIC level. These officials will exercise their powers under the respective provisions only with the approval of the Board (CBIC).

Key Sections Where This Definition Applies:

The following sections of the CGST Act are included under Section 168(2), where the specified Commissioner or Joint Secretary will have authority:

1. Section 2(91) – Defines the term “Commissioner” under GST.
2. Section 5(3) – Allows delegation of Commissioner’s powers to subordinate officers.
3. Section 25(9)(b) – Relates to Aadhaar authentication for GST registration.
4. Section 35(3) & 35(4) – Deals with maintenance of accounts and records by taxpayers.
5. Section 37(1) – Concerns furnishing details of outward supplies.
6. Section 38(2) (Omitted in 2022) – Earlier related to the inward supplies statement.
7. Section 39(6) – Covers filing of returns by registered persons.
8. Section 44 – Relates to annual return and reconciliation statement.
9. Section 52(4) & 52(5) – Relates to tax collection at source by e-commerce operators.
10. Section 143(1) (except the second proviso) – Deals with the procedure for job work.
11. Section 158(3)(l) – Governs disclosure of information under GST.
12. Section 167 – Deals with delegation of powers by the Government.

Implications of Section 168(2):

• It ensures that decision-making under these sections is handled at a higher administrative level within the CBIC.
• The Commissioner or Joint Secretary posted in the CBIC Board can act under these sections only after obtaining Board approval to maintain consistency in implementation.
• This helps in uniform administration of GST laws across India and ensures centralized control over critical tax provisions.

Conclusion:

Section 168(2) of the CGST Act plays a key role in streamlining GST administration by assigning specific powers to senior officials in the CBIC. This ensures that major policy decisions and critical actions under the mentioned sections are taken only with proper approval from the Board, promoting accountability and consistency in GST law enforcement.