Section 26 of UTGST Act 2017: Removal of Difficulties

Provisions under Section 26 of the Union Territory Goods and Services Tax (UTGST) Act, 2017 relating to “Removal of Difficulties”, are as under:

Section 26 of UTGST Act 2017: Removal of Difficulties (CHAPTER IX – MISCELLANEOUS)

(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 five years from the date of commencement of this Act. [Refer Note 1]

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

Amendments History:

1. In the proviso to sub-section (1), the text ‘five years’ substituted for the text ‘three years’ vide Section 138 of the Finance Act 2020 (GOI Notification dated 27/03/2020).

Commentary on Section 26 of UTGST Act, 2017

Section 26 of the Union Territory Goods and Services Tax (UTGST) Act, 2017 is titled “Removal of Difficulties” and addresses the process to resolve any issues that may arise while implementing the provisions of the Act. This section grants the Central Government the authority to issue orders to rectify any such difficulties, subject to certain conditions. The main features of this section are:

i) Central Government’s Role: If any difficulty arises in implementing any provision of the UTGST Act, the Central Government may intervene to resolve the issue. This intervention is based on the recommendations of the GST Council and can take the form of a general or special order. The order must be published in the Official Gazette.

ii) Consistency with Act, Rules and Regulations: The orders issued by the Central Government to resolve difficulties must not be inconsistent with the existing provisions of the UTGST Act or any rules or regulations made under the Act.

iii) Time Limit: The Central Government can only issue orders to address difficulties within a specific time frame. According to the Act, no order can be made after the expiry of a period of five years from the date of commencement of the UTGST Act. This time limit ensures that the government’s authority to make such orders is not indefinite.

iv) Parliamentary Oversight: To ensure transparency and accountability, every order made under Section 26 must be presented before each House of Parliament as soon as possible after it is made. This requirement allows Parliament to scrutinize the orders and ensures that the Central Government acts within the scope of its authority.

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Note: The UTGST Act 2017 has been notified vide GOI Notification dated 12/04/2017, which has subsequently been amended  through UTGST (Amendment) Act 2018, Finance Act 2019, Finance Act 2020, Finance Act 2021, Finance Act, 2022 and Finance Act, 2023 including various Notifications issued by the Govt./ CBIC from time to time, relating to the commencement dates of various Sections/ Provisions in the respective UTGST/ Amendment Acts, wherever required. Information on this page is a Section-wise compilation of the Amendments made by various Notifications issued by CBIC from time to time, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.