CGST Act, 2017 • Chapter XXI - Miscellaneous

Section 162 of CGST Act - Bar on Jurisdiction of Civil Courts

Section 162 of the Central Goods and Services Tax Act, 2017 restricts civil courts from dealing with or deciding questions arising from, or relating to, acts done or purported to be done under the CGST Act. The provision expressly preserves the remedies provided by Sections 117 and 118.

Text of Section 162 - Bar on jurisdiction of civil courts

Section 162: Save as provided in sections 117 and 118, no civil court shall have jurisdiction to deal with or decide any question arising from or relating to anything done or purported to be done under this Act.

The current India Code text continues to state Section 162 in these terms. The provision is part of Chapter XXI, titled "Miscellaneous", of the CGST Act.

Meaning and scope of Section 162

A bar on jurisdiction means that an ordinary civil court cannot assume jurisdiction over a dispute or question that the statute has placed within the GST adjudicatory and appellate framework. Section 162 uses broad language covering questions arising from or relating to anything "done or purported to be done" under the CGST Act.

Accordingly, where the subject matter is an action, decision or proceeding under the CGST Act, the statutory remedies provided under the GST law are ordinarily the relevant route. Section 162 should be read together with the appeal provisions of the Act rather than as an isolated provision.

Express exceptions under Sections 117 and 118

ProvisionWhat it providesRelevance to Section 162
Section 117 Provides for an appeal to the High Court from specified orders of the State Bench or Area Benches of the Appellate Tribunal where the High Court is satisfied that the case involves a substantial question of law, subject to the statutory conditions. Section 162 expressly saves the remedy provided by Section 117.
Section 118 Provides for an appeal to the Supreme Court from specified orders, including orders of the Principal Bench of the Appellate Tribunal and judgments or orders of a High Court in appeals under Section 117, as provided by the Act. Section 162 expressly saves the remedy provided by Section 118.
Important: Section 162 is a statutory bar on the jurisdiction of civil courts. It does not itself create an appeal. The available remedy depends on the nature of the GST order, the forum that passed it and the appellate provisions applicable to that order.

Practical legal effect

The purpose of Section 162 is to channel disputes arising under the CGST Act through the specialised mechanism created by the statute. A party aggrieved by a GST action should therefore identify the remedy provided by the Act, including adjudication, appeal, revision or further statutory appeal, as applicable to the particular proceeding.

The words "purported to be done" also indicate that the bar is not confined only to actions ultimately found to have been correctly taken under the Act. Whether the bar applies in a particular dispute, however, depends on the nature of the relief sought, the action challenged and the governing legal principles.

For context, Section 162 sits immediately after Section 161 - Rectification of errors apparent on the face of record and before Section 163 - Levy of fee. Readers may also refer to the Central Goods and Services Tax Act, 2017 index on this website.

Key takeaway

Section 162 prevents ordinary civil courts from deciding questions arising from or relating to acts done or purported to be done under the CGST Act, while expressly preserving the appellate routes under Sections 117 and 118. The correct remedy must therefore be determined within the statutory GST framework applicable to the order or proceeding concerned.