Amended and updated notes on section 173 of CGST Act, 2017. Detail discussion on provisions and rules related to amendment of Act 32 of 1994.
Chapter XXI (Sections 143–174) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to miscellaneous. Section 173 of CGST 2017 provides for amendment of Act 32 of 1994.
Recently, we have discussed in detail section 172 (Removal of difficulties) of CGST Act 2017. Today, we learn the provisions of section 173 of Central GST Act 2017.
Section 173 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 1/2017-Central Tax, G.S.R. 605(E), dated 19.06.2017. This notification was come into force from 22nd June, 2017 i.e. the commencement date of section 173 is 22-6-2017.
| Name of Act | The Central Goods and Services Tax Act 2017 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Central Board of Indirect Taxes & Customs |
| Governing body | GST Council |
| Number of Chapters | 21 |
| Number of Sections | 174 |
| You are reading: | |
| Chapter No. | XXI |
| Chapter Name | Miscellaneous |
| Section No. | 173 |
| Section Name | Amendment of Act 32 of 1994 |
| Updated 2025 Edition | GST Law Book PDF |
Section 173 of Central GST – Amendment of Act 32 of 19941
Section 173 of CGST Act 2017 shall come into force on 22.06.2017 vide Notification No. 1/2017-Central Tax, G.S.R. 605(E), dated 19.06.2017.
Save as otherwise provided in this Act, Chapter V of the Finance Act, 1994 shall be omitted.
Notes on Section 173 of CGST Act
Section 173 of the Central Goods and Services Tax (CGST) Act, 2017 states that, unless otherwise provided in the Act, Chapter V of the Finance Act, 1994, shall be omitted.
What does this mean?
- Chapter V of the Finance Act, 1994, contained the provisions related to Service Tax.
- The CGST Act introduced Goods and Services Tax (GST), which subsumed Service Tax along with various other indirect taxes.
- By virtue of Section 173 of the CGST Act, the provisions related to Service Tax were removed, since GST replaced it.
Impact of Section 173:
- Service Tax is no longer applicable – All indirect taxes, including Service Tax, were replaced by GST from July 1, 2017.
- GST became the unified tax system – Instead of separate taxes like Service Tax, VAT, and Excise Duty, businesses now pay GST.
- Omission applies unless otherwise stated – If any transitional provisions require Service Tax laws to continue in certain cases, those may still be applicable for past periods.
- Section 173 of CGST Act 2017 shall come into force on 22.06.2017 vide Notification No. 1/2017-Central Tax, G.S.R. 605(E), dated 19.06.2017. ↩︎
FAQ on Section 173 of the CGST Act, 2017
Q1. What does Section 173 of the CGST Act, 2017 state?
A: Section 173 of the Central Goods and Services Tax (CGST) Act, 2017, provides for the repeal of certain laws. Specifically, it repeals the Central Excise Act, 1944, and other indirect tax laws that were in force before the introduction of GST, except for certain provisions that continue for transitional purposes.
Q2. Why was Section 173 included in the CGST Act?
A: Section 173 was introduced to eliminate the old indirect tax regime, including excise duty, service tax, and VAT, and replace them with the unified Goods and Services Tax (GST) system.
Q3. Which laws were repealed under Section 173?
A: The following laws were repealed:
- The Central Excise Act, 1944 (except for certain items like petroleum products).
- The Service Tax provisions under Chapter V of the Finance Act, 1994.
- Other related laws as specified in the CGST Act and GST-related amendments in other statutes.
Q4. Are there any exceptions to the repeal under Section 173?
A: Yes, some provisions of the repealed laws continue to be applicable, such as:
- Excise duty on petroleum products and alcoholic liquor for human consumption.
- Service tax for cases where proceedings were initiated before GST implementation.
- Transitional provisions under Section 174 of the CGST Act.
Q5. How does Section 173 impact businesses and taxpayers?
A: With the repeal of old tax laws:
- Businesses no longer need to comply with multiple indirect tax regulations.
- A single GST system simplifies tax administration and compliance.
- Pending litigation and tax liabilities under the old regime are handled through transitional provisions.
Q6. What happens to pending cases related to repealed laws?
A: Pending cases under the repealed laws are handled based on Section 174 of the CGST Act, which provides for:
- Continuation of any investigation, inquiry, verification, or proceedings initiated under the repealed laws.
- Recovery of tax, interest, penalties, or any dues related to the pre-GST regime.
- Legal proceedings, including appeals and reviews, continuing as if the old laws were still in force.
Q7. Can a taxpayer still claim input tax credit (ITC) from the pre-GST era?
A: Taxpayers were allowed to transition eligible input tax credit (ITC) from the old regime to GST under transitional provisions. However, the timelines for claiming such credits have now expired.
Q8. Where can I find the official text of Section 173 of the CGST Act?
A: The official text of Section 173 can be found in the CGST Act, 2017, available on the GST Council’s website or the CBIC (Central Board of Indirect Taxes and Customs) portal.