Amended and updated notes on section 172 of CGST Act, 2017. Detail discussion on provisions and rules related to removal of difficulties.
Chapter XXI (Sections 143–174) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to miscellaneous. Section 172 of CGST 2017 provides for removal of difficulties.
Recently, we have discussed in detail section 171 (Antiprofiteering measure) of CGST Act 2017. Today, we learn the provisions of section 172 of Central GST Act 2017.
Section 172 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 1/2017-Central Tax, G.S.R. 605(E), dated 19.06.2017. This notification was come into force from 22nd June, 2017 i.e. the commencement date of section 172 is 22-6-2017.
| Name of Act | The Central Goods and Services Tax Act 2017 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Central Board of Indirect Taxes & Customs |
| Governing body | GST Council |
| Number of Chapters | 21 |
| Number of Sections | 174 |
| You are reading: | |
| Chapter No. | XXI |
| Chapter Name | Miscellaneous |
| Section No. | 172 |
| Section Name | Removal of difficulties |
| Updated 2025 Edition | GST Law Book PDF |
Section 172 of Central GST – Removal of difficulties1
Section 172 of CGST Act 2017 shall come into force on 22.06.2017 vide Notification No. 1/2017-Central Tax, G.S.R. 605(E), dated 19.06.2017.
Section 172(1) of CGST Act
Section 172(1): If any difficulty arises in giving effect to any provisions of this Act, the 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 five years from the date of commencement of this Act. – The term five years was substituted by the Finance Act, 2020 w.e.f. 30th June 2020 vide Notification No. 49/2020-Central Tax, G.S.R. 402(E), dated 24.06.2020.
Section 172(2) of CGST Act
Section 172(2): Every order made under this section shall be laid, as soon as may be, after it is made, before each House of Parliament.
Notes on Section 172 of CGST
Explanation of CGST Section 172(1)
Purpose:
Section 172(1) of the Central Goods and Services Tax (CGST) Act, 2017, provides the government with the power to address any difficulties that may arise in implementing the provisions of the Act.
Key Points:
- Authority to Remove Difficulties:
- If any issue arises in implementing any provision of the CGST Act, the Government can take necessary steps to resolve it.
- This action must be based on the recommendations of the GST Council.
- Method of Resolution:
- The Government can issue a general or special order to address the difficulty.
- Such an order must be published in the Official Gazette.
- Conditions for Orders:
- The provisions made through such orders must not be inconsistent with the CGST Act, rules, or regulations.
- The order should be aimed at making the implementation of the Act clearer and more effective.
- Time Limit:
- The Government cannot issue such an order beyond five years from the date of commencement of the CGST Act (i.e., from July 1, 2017).
- This means that after June 30, 2022, no further orders can be issued under this section.
Practical Implication:
This provision was designed as a temporary measure to handle unforeseen challenges during the initial years of GST implementation. After the five-year period, any further modifications must be done through formal amendments to the Act or rules.
Explanation of CGST Section 172(2)
Key Points:
- Mandatory Parliamentary Oversight:
- Any order issued by the Government under Section 172(1) (to remove difficulties) must be placed before both Houses of Parliament—Lok Sabha and Rajya Sabha.
- Timing of Submission:
- The phrase “as soon as may be” indicates that the order should be laid before Parliament at the earliest possible opportunity after it has been issued.
- Purpose of This Requirement:
- Ensures transparency and accountability in the Government’s actions.
- Allows Parliament to review, discuss, or challenge the order if necessary.
- Prevents misuse of the power granted under Section 172(1).
Practical Implication:
Even though the Government has been given special powers to address difficulties in implementing GST, it cannot act arbitrarily. Every order issued under this section must be made public through Parliament, ensuring that the legislative body retains oversight and control.
- Section 172 of CGST Act 2017 shall come into force on 22.06.2017 vide Notification No. 1/2017-Central Tax, G.S.R. 605(E), dated 19.06.2017. ↩︎
FAQ on Section 172 of the CGST Act, 2017
Q1. What is the purpose of Section 172 of the CGST Act, 2017?
A: Section 172 empowers the Government to issue orders to remove any difficulties in implementing the CGST Act. This provision helps address unforeseen issues that arise during the transition to GST.
Q2. How long was the power under Section 172 available?
A: The power to issue removal of difficulties (RoD) orders under Section 172 was available for five years from the date of implementation of the CGST Act, i.e., until June 30, 2022.
Q3. What kind of difficulties can be addressed under this section?
A: The Government can use Section 172 to address issues related to:
- Ambiguities in the law.
- Implementation challenges.
- Compliance difficulties faced by taxpayers.
Q4. What are the key features of an RoD order issued under Section 172?
A:
- The order must be consistent with the CGST Act and cannot override its provisions.
- It must be published in the Official Gazette.
- It can clarify or modify the application of any provision of the Act.
Q5. Can Section 172 be used to amend the CGST Act?
A: No, Section 172 does not grant the Government the power to amend the Act. It only allows issuing orders to clarify or address implementation challenges. Any formal amendment to the Act requires approval by Parliament.
Q6. How many times has the Government issued orders under Section 172?
A: Several Removal of Difficulty (RoD) orders were issued during the first five years of GST implementation to address transitional and procedural challenges. Examples include clarifications on registration, tax liability, and procedural relaxations.
Q7. Is Section 172 still applicable after June 30, 2022?
A: No, the power under Section 172 expired after five years from the commencement of the Act. Any further clarifications or modifications now require legislative amendments or notifications under other provisions of the CGST Act.
Q8. Where can I find the official RoD orders issued under Section 172?
A: Official RoD orders are published on the CBIC (Central Board of Indirect Taxes and Customs) website and in the Official Gazette of India.
