IGST Section 24 — Laying of rules, regulations and notifications
IGST Act · Laying of rules, regulations and notifications
Quick Answer
Section 24 of the IGST Act, 2017 governs Laying of rules, regulations and notifications. It provides the core statutory basis, outlining the essential legal principles, rights, and liabilities under Indian indirect tax law. Section 24 IGST: Laying of rules, regulations and notifications — eligibility, conditions, case laws and compliance impact under Indian tax law.
Plain-English Explanation
Section 24 of the IGST Act ensures parliamentary oversight of rules, regulations, and notifications issued under the Act. It mandates that these pronouncements be presented to both Houses of Parliament for review and potential modification or annulment.
Essentially, Section 24 is a check and balance mechanism to ensure the executive branch (the Government and the GST Board) doesn't wield unchecked power in interpreting and implementing the IGST Act. It applies to every rule made by the Central Government, every regulation made by the GST Board (CBIC – Central Board of Indirect Taxes and Customs), and every notification issued by the Central Government under the IGST Act. The timing is critical: these pronouncements must be laid before Parliament "as soon as may be" after they are made or issued. This means there should be no undue delay in presenting them.
Here are the key conditions and exceptions involved:
- Laying Before Parliament: The rule, regulation, or notification must be placed before both the Lok Sabha (House of the People) and the Rajya Sabha (Council of States).
- Session Timing: This laying must occur while Parliament is in session.
- Time Period for Review: Parliament has a total of thirty days to review the document. This thirty-day period can be spread across one or multiple sessions of Parliament.
- Parliamentary Action: During this review period, both Houses can agree to:
- Make modifications to the rule, regulation, or notification.
- Annul (cancel) the rule, regulation, or notification altogether.
- Effect of Parliamentary Action:
- If modifications are agreed upon, the rule, regulation, or notification will only be effective in its modified form.
- If annulment is agreed upon, the rule, regulation, or notification will cease to have any effect.
- Protection of Past Actions: Any modification or annulment by Parliament does not invalidate actions taken before the modification or annulment took effect. This is a crucial safeguard to ensure stability and avoid retrospective disruption.
Let's consider a practical example:
Suppose the Central Government issues a notification clarifying the definition of "intermediary" services under the IGST Act. This notification is then laid before both Houses of Parliament. During the review period, Parliament feels the definition is too broad and could negatively impact Indian businesses providing IT services to overseas clients. Both Houses agree to modify the definition to provide a clearer and narrower scope. The notification will then only have effect in its modified form, benefitting businesses by providing greater clarity and potentially reducing their IGST liability. However, any IGST already paid or assessed based on the original notification will not be affected by this change.
Another example:
The GST Board issues a regulation about the procedure for claiming refunds of IGST paid on exports. If Parliament believes the procedure is overly complex and creates undue hardship for exporters, they can annul the regulation. The Board would then need to formulate a new, simplified procedure. Again, previous refunds processed under the annulled regulation remain valid.
There haven't been any major amendments specifically altering the core principle of Section 24 itself. The fundamental purpose remains to ensure transparency and parliamentary control over the subordinate legislation (rules, regulations, and notifications) issued under the IGST Act.
For business owners, it's important to understand that while rules, regulations, and notifications directly impact their GST compliance and liabilities, Parliament has the final say. Businesses should remain vigilant about proposed changes and can, through industry associations and other channels, communicate their concerns to Members of Parliament. This participation can potentially influence the parliamentary review process and ensure that GST laws are fair, practical, and conducive to business growth. Being aware of Section 24 helps businesses appreciate the democratic process behind GST law-making.
No case laws found for this section yet.
Browse all case laws →Frequently Asked Questions
What powers does IGST Section 24 grant regarding rules, regulations, and notifications?
IGST Section 24 grants the government, on the recommendation of the Council, the power to make rules for carrying out the provisions of the IGST Act. It also empowers the government to issue notifications, circulars, and orders to clarify the provisions of the Act and remove difficulties.
What is the significance of 'on the recommendation of the Council' in IGST Section 24?
The phrase 'on the recommendation of the Council' emphasizes that the government's power to make rules under IGST Section 24 is not absolute. It must act based on the collective wisdom and recommendations of the Goods and Services Tax (GST) Council, ensuring a harmonized approach across states.
What types of issues can be addressed through rules, regulations, and notifications issued under IGST Section 24?
These can cover a wide range of issues, including procedures for registration, returns filing, payment of taxes, refunds, assessments, audit, appeals, and any other matter necessary for the effective implementation of the IGST Act. Specific issues might include clarification of definitions, determination of the place of supply, and procedural aspects of cross-state transactions.
How are the rules, regulations, and notifications issued under IGST Section 24 made public?
Generally, these are published in the Official Gazette of India. Additionally, the GST portal and other relevant government websites often host these documents for easy access by taxpayers and tax professionals.
What is the legal standing of notifications and circulars issued under IGST Section 24?
Notifications and circulars issued under IGST Section 24 are legally binding. While circulars primarily aim to clarify existing provisions and resolve doubts, they cannot override the provisions of the IGST Act or rules made thereunder. However, clarifications issued in good faith are often given considerable weight by tax authorities and courts.
Can rules issued under IGST Section 24 be challenged in court?
Yes, rules issued under IGST Section 24 can be challenged in court if they are deemed to be ultra vires (beyond the powers) of the IGST Act or in violation of fundamental rights. The courts can review the validity and legality of such rules.
How do businesses stay updated on changes brought about by rules, regulations, and notifications under IGST Section 24?
Businesses should regularly monitor the GST portal, the Official Gazette, and news updates from reputable tax advisory firms. Subscribing to email alerts from relevant government departments and professional bodies can also help stay informed about changes in the IGST rules and regulations.
Key Conditions & Requirements
| Condition | Details |
|---|---|
| Laying before Parliament | Every rule made by the Government, regulation made by the Board, and notification issued by the Government under the IGST Act must be laid before each House of Parliament. |
| Timing of Laying | The laying before Parliament must occur as soon as may be after the rule, regulation, or notification is made or issued. |
| Session Requirement | The laying before Parliament must occur while the House is in session. |
| Total Period | The rule, regulation, or notification must be laid before Parliament for a total period of thirty days, which may be comprised in one session or in two or more successive sessions. |
| Parliamentary Modification | If both Houses of Parliament agree to make any modification to the rule, regulation, or notification, it shall thereafter have effect only in such modified form. |
| Parliamentary Annulment | If both Houses of Parliament agree that the rule, regulation, or notification should not be made, it shall thereafter be of no effect. |
| Timeframe for Agreement | The agreement of both houses for modification or annulment must occur before the expiry of the session immediately following the session or the successive sessions during which it was laid. |
| Validity of Prior Actions | Any modification or annulment by Parliament is without prejudice to the validity of anything previously done under the rule, regulation, or notification. |
No related notifications found for this section.
Browse all notifications →Amendment History
Inserted by s. 12 of The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) - Brought into force w.e.f. 01st February, 2019.
Omitted by s. 3 of Central Goods and Services Tax (Amendment) Act, 2023 (No. 30 of 2023) - Brought into force w.e.f. 01st October, 2023 vide Notification No. 48/2023-C.T. , dated 29nd Sep, 2023.
Inserted by s. 3 of Central Goods and Services Tax (Amendment) Act, 2023 (No. 30 of 2023) - Brought into force w.e.f. 01st October, 2023 vide Notification No. 48/2023-C.T. , dated 29nd Sep, 2023.