POWER OF GOVERNMENT TO MAKE RULES & REGULATIONS [SECTIONS 164 & 165 OF THE CGST ACT, 2017] - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

21. POWER OF GOVERNMENT TO MAKE RULES REGULATIONS [SECTIONS 164 165 OF THE CGST ACT, 2017] 21.1. Section 164 of the CGST Act, 2017 empowers the Government to make rules on the recommendations of the GST Council for carrying out the provisions of the Act. 21.2. The following are noteworthy in this regard: The Government may make rules for all or any of the matters which by the Act are required to be, or may be, prescribed or in respect of which provisions are to be or may be made by rules. The rules may also be issued with retrospective effect but not from a date earlier than the date on which the provisions of the Act have come into force. The rules may provide for a penalty not exceeding Rs.10,000/- for committing breach of any rule. 21.3. Section 165 of the CGST Act, 2017 empowers the Board to make regulations consistent with the Act and the rules made thereunder to carry out the provisions of the Act. 21.4. Thus, while the rule making power lies with the Government, the regulation making power has been delegated to the CBIC (Board). 21.5. The Central Government and the Board have been vested with the similar powers of making rules and regulations respectively under sections 22 23 of the IGST Act, 2017 also.