Section 165 of CGST Act - Power to Make Regulations

Section 165 of the Central Goods and Services Tax Act, 2017 empowers the Board to make regulations, by notification, for carrying out the provisions of the Act. The regulations must remain consistent with the CGST Act and the rules made under it.

Updated: 15 September 2026

Text of Section 165

Meaning and Scope of Section 165

The provision is a delegated legislation clause. Parliament has enacted the substantive framework of the CGST Act, while Section 165 authorises the "Board" to frame regulations for implementing that framework. The power is not independent of the Act: a regulation must be consistent with both the CGST Act and the rules made under it.

Section 165 and Delegated Legislation

Section 165 should be read as an implementation power rather than a power to alter the statute. Regulations operate within the authority delegated by the Act. If a regulation travels beyond the enabling provisions, conflicts with the Act, or conflicts with rules validly made under the Act, its validity may be open to challenge under general principles governing subordinate legislation.

Difference Between Rules and Regulations

Section 164 gives the Central Government power, on the recommendations of the GST Council, to make rules for carrying out the CGST Act. Section 165 separately gives the Board power to make regulations. Thus, the statute identifies different delegated authorities and requires regulations made by the Board to remain consistent with the Act and the rules.

Parliamentary Laying Requirement

Section 166 provides for rules made by the Government, regulations made by the Board and notifications issued by the Government under the CGST Act to be laid before each House of Parliament in the manner prescribed by that section. This supplies legislative oversight over delegated instruments made under the Act.

Practical Legal Effect

For taxpayers and practitioners, the key point is that a regulation is subordinate to the parent Act and the applicable rules. The enabling provision, the wording of the regulation, the relevant notification and any connected rules should therefore be read together before relying on a regulation in compliance, assessment, adjudication or litigation.

Related CGST Act Provisions

Section 164 - Power of Government to make rules | Section 166 - Laying of rules, regulations and notifications | Section 167 - Delegation of powers | Section 168 - Power to issue instructions or directions