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

Section 26 of UTGST Act - Removal of Difficulties

Section 26 of the Union Territory Goods and Services Tax Act, 2017 deals with resolving difficulties in implementing the Act. It authorises a limited form of Central Government action, subject to recommendations of the GST Council, publication in the Official Gazette, consistency with the law and parliamentary oversight.

Section 26 - Statutory text

(1) If any difficulty arises in giving effect to any provision of this Act, the Central Government may, on the recommendations of the Council, by a general or a special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act or the rules or regulations made thereunder, as may be necessary or expedient for the purpose of removing the said difficulty:

Provided that no such order shall be made after the expiry of a period of three years from the date of commencement of this Act.

(2) Every order made under this section shall be laid, as soon as may be, after it is made, before each House of Parliament.

Meaning and scope of Section 26

A removal-of-difficulties order is a statutory instrument intended to address a practical or legal implementation difficulty in giving effect to an existing provision. It is not an unrestricted power to amend the UTGST Act or override rules and regulations. The section requires that any order be not inconsistent with the Act, rules or regulations made under it.

Who may issue an order?

Only the Central Government may exercise the power under Section 26, and it must act on the recommendations of the GST Council. The order may be general or special and must be published in the Official Gazette. The GST Council is the constitutional body established under Article 279A of the Constitution of India.

What is the time limit?

The proviso to Section 26(1) prohibits an order after three years from the date of commencement of the Act. This is a limit on the power to issue a new removal-of-difficulties order, not a general three-year limit for all GST notifications, rules, assessments or recovery actions. The commencement of the relevant UTGST Act provisions must be checked under Section 1 and the applicable commencement notifications. This special power is therefore historical in its ordinary time-bound operation and should not be treated as an ongoing authority to issue fresh orders in 2026.

What parliamentary procedure applies?

Under Section 26(2), every order made under this section must be laid before each House of Parliament as soon as may be after it is made. This specific laying requirement is distinct from the detailed parliamentary procedure for rules, regulations and notifications in Section 24.

Conditions for a valid removal-of-difficulties order

An identifiable difficulty must arise in giving effect to a provision of the UTGST Act.
The Central Government must act on the recommendations of the GST Council.
The order must be a general or special order published in the Official Gazette.
Its provisions must be necessary or expedient to remove that difficulty and consistent with the Act and subordinate legislation.
The order must satisfy the statutory three-year issuance limit and be laid before both Houses of Parliament.

Section 22 authorises the Central Government to make rules on the GST Council's recommendations. Section 23 concerns the Board's regulation-making power. Section 25 concerns the Commissioner's instructions and directions for uniform implementation. These are separate legal powers and should not be confused with Section 26.

Legal note: A published order and any subsequent judicial interpretation must be read in their specific statutory and historical context. Section 26 does not itself impose a tax, establish a tax rate or grant a general exemption.

Official law and notification resources

Read the UTGST Act, 2017 (India Code) and the India Code legislation database for statutory texts and amendments. For orders, rules and notifications, consult the CBIC Tax Information Portal, CBIC GST portal and the GST Council website.