Union Territory Goods and Services Tax Act, 2017 | Chapter IX: Miscellaneous

Section 22 of the UTGST Act, 2017: Power to Make Rules

Section 22 authorises the Central Government, acting on the recommendations of the GST Council, to make rules for implementing the Union Territory Goods and Services Tax Act, 2017. It also addresses prescribed matters, retrospective operation and penalties for contravening rules.

Meaning and legal scope

Rule-making power is the statutory authority to frame subordinate legislation for administering an Act. A notification is the formal instrument through which the Central Government makes the rules. The Council means the Goods and Services Tax Council referred to in the Act, constituted under article 279A of the Constitution. Prescribed means prescribed by rules made under the Act, as provided in section 2 of the UTGST Act. Rules must remain within the authority of the parent legislation and applicable constitutional requirements.

Section 22: provisions and explanation

Section 22(1): Government power to make rules

The Central Government may, on the recommendations of the Council, by notification, make rules for carrying out the provisions of this Act.

The power belongs to the Central Government, with GST Council recommendations forming part of the statutory rule-making process. Rules facilitate the practical operation of the UTGST Act and do not independently replace the Act itself.

Section 22(2): Matters that may be prescribed

Without prejudice to the generality of the provisions of sub-section (1), the Central Government may make rules for all or any of the matters which by this Act are required to be, or may be, prescribed or in respect of which provisions are to be or may be made by rules.

This is an enabling provision for matters expressly left to rules as well as the general implementation power in sub-section (1). The phrase without prejudice indicates that the specific power does not narrow the general power.

Section 22(3): Retrospective effect

The power to make rules conferred by this section shall include the power to give retrospective effect to the rules or any of them from a date not earlier than the date on which the provisions of this Act come into force.

Retrospective operation is permitted within this express statutory boundary. A rule cannot rely on section 22(3) to take effect before the commencement of the relevant provision of the UTGST Act. Whether a particular amendment applies to an earlier period depends on the language and validity of that rule and its notification.

Section 22(4): Penalty for breach of rules

Any rules made under sub-section (1) may provide that a contravention thereof shall be liable to a penalty not exceeding ten thousand rupees.

The Rs 10,000 amount is the maximum penalty that a rule may specify under this particular delegation. It is not an automatic penalty for every breach and does not replace separately applicable statutory penalties under other provisions.

How section 22 operates in practice

Statutory authority: The UTGST Act identifies the matters to be implemented or prescribed.
GST Council recommendations: Section 22(1) requires recommendations of the Council for rules made under the section.
Official notification: The Central Government issues the rules or amendments through the prescribed notification process.
Compliance: Taxpayers and administrators apply the operative version of the rules for the relevant tax period, including any valid commencement or retrospective provision.
Legislative oversight: Section 24 governs laying of rules, regulations and notifications before Parliament.

Section 21, UTGST Act - application of specified CGST Act provisions, mutatis mutandis, to Union territory tax.
Section 23, UTGST Act - separate power to make regulations.
Section 24, UTGST Act - parliamentary laying requirements.
Section 25, UTGST Act - instructions and directions; distinct from making rules.
Central Goods and Services Tax Act, 2017 - related framework, including section 164 on rule-making powers under that Act.

Official legal sources and updates

Union Territory Goods and Services Tax Act, 2017 (India Code) - original statutory text; check amendments and commencement notifications.
India Code - central legislation and amendments.
CBIC GST - GST rules, circulars and notifications.
CBIC Tax Information Portal - official notification and amendment lookup.
GST Council - Council materials and recommendations.

Reading current rules: For a particular filing, assessment or dispute, verify the applicable notified rule and its effective date. The rule-making authority in section 22 does not, by itself, set all procedural requirements.

Other GST resources

These original-site references are retained for historical research. Older GST rates and guidance may have changed; confirm current positions from official notifications.