Chapter IX - Miscellaneous
Section 22
Section 22: Power to make rules
Section 22 lets the Central Government, on the GST Council's recommendations, make rules by notification to carry out the UTGST Act. Rules may be retrospective only back to the date the Act's provisions came into force, and may provide a penalty of up to ten thousand rupees for contravention.
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Need advice on Section 22?
This article is for general information. Refer to the Union Territory Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(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.
Introduction
Separate UTGST rules were made for individual Union territories. For example, Notification No. 5/2017-Union Territory Tax made the UTGST (Andaman and Nicobar Islands) Rules, 2017 under Section 22 read with Section 21, adapting the CGST Rules, 2017 for the listed matters.
Key takeaways
Central Government makes the rules
Rules are made by the Central Government by notification on the GST Council's recommendations.
Limited retrospectivity
Rules may be retrospective, but not from a date earlier than the date on which the Act's provisions came into force.
Penalty cap
Rules may provide that a contravention attracts a penalty not exceeding ten thousand rupees.
Scope of the power
Sub-section (2) confirms that the power covers every matter the Act says is to be prescribed. Rules cannot override the Act.
Territory-specific rules
Notification No. 5/2017-Union Territory Tax (30 June 2017) made the UTGST (Andaman and Nicobar Islands) Rules, 2017, in force from 1 July 2017. CBIC's notification index lists corresponding rules for Chandigarh, Dadra and Nagar Haveli, Daman and Diu, and Lakshadweep in Notifications No. 6 to 9/2017-Union Territory Tax. Check the rules as amended for the territory and period concerned.
Practical checklist
Do
- Identify the UTGST rules for the specific Union territory and check their amendment history.
Frequently asked questions
Who makes UTGST rules?
The Central Government, on the recommendations of the GST Council, by notification.
Need help applying this provision to your situation?
Contact BizeneedLast updated 11 October 2026