Section 23 of IGST Act - Power to Make Regulations
Section 23 of the Integrated Goods and Services Tax Act, 2017 empowers the Board to make regulations by notification for carrying out the provisions of the IGST Act. The regulation-making power is expressly subject to the Act and the rules made under it.
Text of Section 23 of the IGST Act
23. Power to make regulations. The Board may, by notification, make regulations consistent with this Act and the rules made thereunder to carry out the provisions of this Act.
Meaning and Scope of Section 23
Section 23 is a delegated legislation provision. Parliament has enacted the IGST Act, while this section authorises the Board to issue regulations dealing with matters needed to implement the Act. The power is not unrestricted: any regulation made under Section 23 must remain consistent with the IGST Act and with the rules made under it.
Who is the "Board"?
The IGST Act provides that words and expressions used but not defined in it have the meanings assigned to them in specified GST enactments, including the Central Goods and Services Tax Act, 2017. Under the CGST Act, "Board" means the Central Board of Indirect Taxes and Customs (CBIC).
What does "by notification" mean?
Section 23 requires the regulation-making power to be exercised by notification. In practical terms, a regulation under this section must be formally notified through the legally prescribed publication process rather than created merely through informal administrative instructions.
Limits on the regulation-making power
- Consistency with the Act: a regulation cannot override or contradict the IGST Act.
- Consistency with the rules: a regulation must also remain consistent with rules validly made under the Act.
- Implementation purpose: the power is given to carry out the provisions of the IGST Act.
- Statutory scrutiny: Section 24 deals with laying rules, regulations and specified notifications before Parliament.
Section 23 and Section 22 - Difference
Section 22 confers the power to make rules on the Government, on the recommendations of the GST Council, for carrying out the provisions of the Act. Section 23 separately empowers the Board to make regulations by notification, subject to consistency with both the Act and the rules. These are distinct forms of delegated legislation under the statutory framework.
Connection with Section 24
Section 24 of the IGST Act provides the parliamentary laying mechanism for rules and regulations made under the Act and for specified notifications. Section 23 should therefore be read together with Section 24 when examining how regulations are made and subjected to legislative oversight.