Section 22 of The Union Territory Goods and Services Tax Act, 2017
- (1)The Central Government may, on the recommendations of the Council, by notification, make rules for carrying out the provisions of this Act.
- (2)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.
- (3)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.
- (4)Any rules made under sub-section (1) may provide that a contravention thereof shall be liable to a penalty not exceeding ten thousand rupees.
Summary
- The Central Government has the power to create rules to make the Act work, but it must get recommendations from the Council first.
- These rules can cover any matter that the Act says needs to be prescribed.
- A rule can be applied backward in time to an earlier date (retrospectively), but it cannot apply to a date before the Act originally started.
- If a person breaks one of these rules, the rule can include a penalty fine of up to ten thousand rupees.
Practical examples
FAQ
1. Who is in charge of making the rules for this tax law?
The Central Government makes the rules, but they can only do so based on recommendations from the Council.
2. Can a new rule punish someone for something they did before the Act existed?
No. While rules can apply to past dates, they can never apply to a date earlier than when the Act itself came into force.
3. What is the maximum fine I can get for breaking a rule?
A rule can set a penalty for breaking it, but the fine cannot be more than ten thousand rupees.
Test yourself
Q1.Under Section 22 of The Union Territory Goods and Services Tax Act, 2017, who is authorised to make rules to carry out the provisions of the Act?
Q2.Under Section 22 of The Union Territory Goods and Services Tax Act, 2017, what is the earliest date a newly made rule can be given retrospective effect?
Q3.Under Section 22 of The Union Territory Goods and Services Tax Act, 2017, if a person contravenes a newly made rule, what is the maximum penalty that the rule can impose?
Q4.Under Section 22 of The Union Territory Goods and Services Tax Act, 2017, rules are made by the Central Government. How does this compare to the power to make regulations under Section 23?