Section 148 – Special Procedure for Certain Processes

Section 148 of the Central Goods and Services Tax Act, 2017 gives the Government the power to prescribe a special procedure for certain classes of registered persons or specified processes under GST.

The provision is designed to provide flexibility where the ordinary GST compliance procedure may not be suitable for a particular class of taxpayers, transaction, business model or process. Under Section 148, the Government may, on the recommendations of the GST Council and subject to prescribed conditions and safeguards, notify certain classes of registered persons and specify the special procedures that they must follow.

These special procedures may relate to registration, furnishing of returns, payment of tax and administration of the specified persons. The provision has been used on several occasions to introduce targeted compliance mechanisms, including special procedures for particular industries, categories of taxpayers and specific remedial processes.

What Is Section 148 of the CGST Act?

Section 148 is titled “Special procedure for certain processes.”

The provision authorises the Government, on the recommendations of the GST Council and subject to prescribed conditions and safeguards, to:

• notify certain classes of registered persons; and
• prescribe special procedures to be followed by those persons.

The special procedures can cover matters such as:

• registration;
• furnishing of returns;
• payment of tax; and
• administration of the specified persons.

Section 148 is therefore an enabling provision. It does not itself prescribe one universal special procedure applicable to every registered person. Instead, it provides the legal authority for the Government to introduce particular special procedures through notifications.

Why Was Section 148 Introduced?

GST is intended to operate through common procedures for a large number of businesses. However, different industries and business models can have substantially different compliance requirements.

For example, a particular class of taxpayers may require:

• a different return mechanism;
• a simplified payment process;
• special registration requirements;
• a specific method of reporting transactions;
• a temporary compliance relaxation; or
• a special procedure for implementing a particular statutory amendment.

Instead of creating a completely separate statutory framework for every such situation, Section 148 allows the Government to prescribe a special procedure for a notified class of registered persons.

The GST Council has specifically discussed the use of Section 148 for introducing special procedures for particular taxpayer categories and processes.

Exact Scope of Section 148

The statutory language gives the Government power to notify:

“certain classes of registered persons”

and prescribe:

“the special procedures to be followed by such persons”

The provision specifically mentions procedures relating to:

1. Registration
2. Furnishing of returns
3. Payment of tax
4. Administration of such persons

The Government’s power is subject to:

• recommendations of the GST Council; and
• conditions and safeguards prescribed under the applicable notification or rules.

Section 148 Is an Enabling Provision

An important point is that Section 148 itself generally does not tell every taxpayer what special procedure to follow.

Instead, it provides the legal authority for issuing a notification.

The actual compliance requirements are found in the notification issued under Section 148 and, where applicable, related rules, circulars or instructions.

Therefore, a taxpayer should not rely only on the text of Section 148 when determining whether a particular special procedure applies.

The taxpayer should identify the relevant notification and check:

• the class of persons covered;
• effective date;
• eligibility conditions;
• procedure;
• forms;
• time limits;
• restrictions;
• safeguards; and
• consequences of non-compliance.

Who Can Be Covered Under Section 148?

Section 148 refers to certain classes of registered persons.

Therefore, the Government can identify a particular category instead of applying the special procedure to every registered person.

A notification may define the eligible class by reference to the nature of the business, type of transaction, statutory situation or other specified criteria.

This means that merely being registered under GST does not automatically mean that a taxpayer is covered by every notification issued under Section 148.

The specific notification must be examined.

Special Procedure for Registration

One of the matters expressly mentioned in Section 148 is registration.

A notification issued under this provision may prescribe a special registration-related procedure for a particular class of registered persons or a particular situation.

The exact requirements depend on the relevant notification.

Therefore, taxpayers should distinguish between:

• the general registration provisions under Section 25; and
• a special registration procedure specifically notified under Section 148.

Special Procedure for Furnishing Returns

Section 148 also permits special procedures concerning furnishing of returns.

This can be particularly useful where the normal return mechanism needs to be modified for a particular class of taxpayers.

A Section 148 notification may specify:

• which return or statement is required;
• the frequency of filing;
• the manner of filing;
• the period covered;
• applicable conditions; and
• any special reporting requirements.

The GST Council has previously considered Section 148 as the statutory basis for special return and payment procedures for particular categories of taxpayers.

Special Procedure for Payment of Tax

Section 148 expressly includes payment of tax among the areas for which a special procedure can be prescribed.

A notified procedure may therefore modify or simplify the manner in which a specified class of taxpayers pays its GST liability, subject to the conditions of the relevant notification.

This does not mean that Section 148 itself changes the rate of GST.

The rate of tax is governed by the relevant charging and rate provisions. Section 148 primarily provides authority for prescribing a special compliance procedure.

Special Procedure for Administration

Section 148 also specifically refers to the administration of such persons.

This gives the Government flexibility to establish special administrative arrangements for a notified class.

Depending on the particular notification, this can involve special compliance, reporting or procedural requirements designed for the relevant category.

Section 148 Does Not Automatically Exempt Tax

One of the most important points is that a special procedure under Section 148 does not automatically mean that tax is waived.

Section 148 is primarily a procedural enabling provision.

Whether tax is:

• payable;
• exempt;
• reduced;
• deferred; or
• subject to a particular rate

must be determined from the relevant substantive provisions, notifications and the specific Section 148 notification.

A taxpayer should therefore not interpret the words “special procedure” as meaning “tax exemption.”

Section 148 and the GST Council

The Government’s power under Section 148 is exercised on the recommendations of the GST Council.

The GST Council therefore has an important role in the policy framework underlying special procedures under Section 148.

The Council has considered Section 148 in connection with several special compliance mechanisms over the life of the GST regime.

Conditions and Safeguards Under Section 148

Section 148 expressly states that the Government’s power is subject to such conditions and safeguards as may be prescribed.

This means that a special procedure is not necessarily unrestricted.

The notification may prescribe:

• eligibility requirements;
• documentary conditions;
• filing deadlines;
• payment requirements;
• reporting obligations;
• restrictions;
• verification procedures;
• application requirements; and
• other safeguards.

A taxpayer covered by a special procedure must comply with the conditions specified in the relevant notification.

Section 148 and Notification-Based Compliance

The practical operation of Section 148 can be understood through a simple sequence:

GST Act → Section 148 → Government notification → Special procedure → Taxpayer compliance

The Act provides the enabling power.

The notification identifies the persons or process covered.

The notification then establishes the specific procedure and conditions.

Therefore, the notification is often as important as Section 148 itself when determining the actual compliance obligation.

Example – Special Procedure for a Specific Class of Taxpayers

Suppose the Government identifies a particular class of registered persons for which the ordinary GST return procedure is not appropriate.

Using the power under Section 148, the Government may notify that class and prescribe:

• a specified return procedure;
• a particular payment mechanism;
• specific reporting requirements; and
• conditions for using the special procedure.

Only taxpayers satisfying the notification’s conditions would be able to use that procedure.

Example – Special Procedure for a Specific Process

Suppose a statutory amendment creates relief for a particular category of taxpayers, but implementing that relief requires a separate process for correcting previously issued orders.

Section 148 can provide the legal basis for notifying a special procedure to implement that process.

A recent example is Notification No. 22/2024-Central Tax, which was issued under Section 148 for a special procedure relating to rectification of certain demand orders involving ITC denied because of contravention of Section 16(4), where the ITC became available under the retrospectively inserted Section 16(5) or 16(6), subject to the notification’s conditions.

Section 148 and Section 16(5) and 16(6)

The 2024 use of Section 148 provides a useful example of how this enabling provision operates.

The GST Council recommended a special procedure for taxpayers against whom certain orders had confirmed demands for wrongful availment of ITC because of Section 16(4), where the relevant ITC subsequently became available under the newly inserted Section 16(5) or 16(6).

The Council specifically considered a mechanism under Section 148 for rectification of eligible orders where the normal appeal route was not available or had not been used, subject to specified conditions.

Notification No. 22/2024-Central Tax subsequently notified the special procedure.

CBIC later issued Circular No. 238/32/2024-GST explaining aspects of the implementation, including that rectification under the special procedure was relevant where ITC had been denied solely on account of Section 16(4) and not on another ground.

This example demonstrates that Section 148 is not limited to routine return filing. It can also be used to create a specific statutory procedure for implementing targeted GST relief or corrective measures.

Section 148 and the QRMP-Type Special Procedure

The GST Council has also previously considered Section 148 in connection with special procedures for taxpayers under the composition scheme and certain other categories.

For example, in 2019 the Council considered a special quarterly payment and annual return mechanism for specified taxpayers and proposed the use of Section 148 to operationalise the special procedure.

This illustrates why Section 148 can be important for simplified compliance structures.

The exact requirements, however, depend on the notification applicable to the relevant period.

Section 148 and OIDAR

Section 148 has also been used in connection with special procedures for particular categories of suppliers.

The GST Council records refer to Notification No. 30/2019-Central Tax dated 28 June 2019 as an example of a notification issued under Section 148 concerning OIDAR-related compliance.

OIDAR refers to Online Information and Database Access or Retrieval services.

The example demonstrates that Section 148 can be used when a particular category of supplies requires a specialised compliance mechanism.

Section 148 and Special Industry Procedures

GST legislation has to deal with businesses having very different commercial models.

For certain sectors, the Government may need to establish special procedures because ordinary GST processes do not adequately address their particular operating structure.

Section 148 provides a statutory mechanism for doing so without creating a separate charging provision for every special compliance situation.

However, the exact scope of any industry-specific procedure must always be determined from the applicable notification.

👉 Read More → Section 149 – Goods and services tax compliance rating

Section 148 Does Not Override Every Other GST Provision

Section 148 is not a general overriding clause.

The section authorises the Government to prescribe a special procedure subject to the conditions and safeguards provided by law.

Therefore, a taxpayer should not assume that a Section 148 notification automatically overrides every other provision of the CGST Act.

The effect of the notification must be examined carefully to determine:

• what procedure is modified;
• which persons are covered;
• what period is covered;
• what conditions apply; and
• which statutory provisions continue to operate normally.

Section 148 and Special Procedures for Limited Periods

Some Section 148 procedures can be designed for a particular period or a specific remedial purpose.

For example, a notification may allow a taxpayer to take a particular procedural action within a specified period.

Once that period expires, the special procedure may no longer be available unless it has been extended or otherwise modified.

Therefore, taxpayers should always verify the effective period and applicable deadlines of a Section 148 notification.

Section 148 and Retrospective Legislative Changes

Section 148 can become particularly relevant where Parliament makes a legislative amendment that requires an implementation mechanism.

The 2024 Section 16(5) and 16(6) developments are an example.

The GST Council considered that taxpayers affected by existing orders might require a special procedure to obtain the benefit of the retrospective amendment in situations where ordinary appellate remedies were unavailable or had not been exercised.

The resulting Section 148 notification provided a mechanism for eligible cases.

Difference Between Section 148 and Section 147

Section 147 deals with deemed exports.

It allows the Government, on the recommendations of the GST Council, to notify certain supplies of goods as deemed exports where the specified statutory conditions are satisfied.

Section 148 is different.

Section	Main subject
Section 147	Deemed exports
Section 148	Special procedure for certain processes

Section 147 deals with the treatment of specified supplies.

Section 148 provides procedural flexibility for notified classes of registered persons or processes.

Difference Between Section 148 and Section 149

Section 149 deals with the goods and services tax compliance rating framework.

Section 148, in contrast, deals with special procedures for specified classes of registered persons.

Section	Purpose
Section 148	Special procedures
Section 149	GST compliance rating

These provisions therefore serve different purposes within Chapter XXI of the CGST Act.

Difference Between Section 148 and Section 150

Section 150 deals with information returns.

Section 148 is concerned with special procedures for notified classes of registered persons and processes.

Therefore, they address different compliance mechanisms.

Section 148 and GST Notifications

For practical compliance, the most important document after identifying Section 148 is usually the relevant Central Tax notification.

A taxpayer should check the notification for:

• notification number;
• date;
• statutory authority;
• class of persons covered;
• effective date;
• forms;
• procedure;
• conditions;
• safeguards;
• deadlines;
• exclusions; and
• amendments.

GST Council’s official notification database contains Section 148-related notifications, including Notification No. 22/2024-Central Tax.

Practical Compliance Steps Under Section 148

A registered person dealing with a special procedure should follow a structured approach.

Step 1 – Identify the Notification

Find the specific notification issued under Section 148.

Step 2 – Check Eligibility

Determine whether the taxpayer falls within the class of registered persons covered by the notification.

Step 3 – Check the Effective Date

Verify when the special procedure starts and the period for which it applies.

Step 4 – Read the Conditions

Review all conditions and safeguards.

Step 5 – Check the Required Form

If the notification specifies a particular GST form or electronic application, use the prescribed form.

Step 6 – Follow the Special Procedure

Do not assume that the normal GST procedure automatically applies where the notification provides a different mechanism.

Step 7 – Maintain Supporting Documents

Keep documents supporting eligibility and compliance with the special procedure.

Step 8 – Check Subsequent Amendments

Section 148 notifications may subsequently be amended, extended or supplemented.

Therefore, businesses should verify the latest applicable notification before acting.

Importance of Reading the Notification Carefully

The words of Section 148 are relatively broad.

The actual compliance obligation is normally found in the notification issued under the section.

For example, a notification may cover only taxpayers satisfying a particular condition. Another notification may establish a specific application window. Another may prescribe a particular reporting procedure.

Therefore, reading only Section 148 without reading the corresponding notification can result in an incomplete understanding of the applicable GST procedure.

Section 148 for Taxpayers – Practical Example

Suppose a taxpayer receives a demand order for ITC that was denied solely because the taxpayer missed the time limit under Section 16(4).

A subsequent statutory amendment makes the relevant ITC available in specified circumstances.

The taxpayer’s ordinary appeal period may have expired.

The Government may use Section 148 to prescribe a special procedure for eligible taxpayers to seek rectification of the relevant order.

This is broadly how the 2024 special procedure under Notification No. 22/2024-Central Tax operated.

Section 148 Is Not a General Relief Provision

It is important not to confuse Section 148 with a general power to grant relief to all taxpayers.

The section allows special procedures to be prescribed for certain classes of registered persons or specified processes.

Any relief or procedural benefit depends on the specific notification and its conditions.

A taxpayer cannot claim a Section 148 benefit merely because a similar procedure has been provided for another class of taxpayers.

Section 148 and GST Compliance

Section 148 contributes to the flexibility of the GST system.

Without a provision such as Section 148, every procedural change for a special category might require a more extensive statutory amendment.

Section 148 allows the Government, following the GST Council’s recommendations, to create targeted procedures through notifications while specifying conditions and safeguards.

This makes the GST compliance framework adaptable to new business models, statutory changes and specific implementation requirements.

Key Features of Section 148

The major features of Section 148 can be summarised as follows:

1. Section 148 deals with special procedure for certain processes.
2. It is an enabling provision.
3. The Government exercises the power on the recommendations of the GST Council.
4. The provision allows the Government to notify certain classes of registered persons.
5. A special procedure may then be prescribed for those persons.
6. The procedure may relate to registration.
7. It may relate to furnishing of returns.
8. It may relate to payment of tax.
9. It may relate to administration of the specified persons.
10. The procedure is subject to prescribed conditions and safeguards.
11. Section 148 itself does not automatically provide a tax exemption.
12. The actual compliance requirements are generally found in the relevant notification.
13. Different Section 148 notifications can deal with different classes or processes.
14. Section 148 has been used for targeted GST compliance mechanisms.
15. The GST Council has considered Section 148 for special return and payment procedures.
16. Section 148 was also used for the 2024 special procedure concerning rectification of certain Section 16(4)-related demand orders.
17. A taxpayer must check whether it falls within the specific class covered by the notification.
18. A taxpayer must follow all conditions, safeguards and time limits in the relevant notification.
19. Section 148 should not be interpreted as a general overriding provision for the entire CGST Act.
20. The provision gives the GST framework flexibility to address specialised compliance situations.

Section 148 – Quick Comparison With Nearby Provisions

Provision	Subject
Section 146	Common Portal
Section 147	Deemed exports
Section 148	Special procedure for certain processes
Section 149	GST compliance rating
Section 150	Information return
Section 151	Power to call for information
Section 152	Bar on disclosure of information
Section 153	Taking assistance from an expert
Section 154	Power to take samples

This shows that Section 148 forms part of the miscellaneous provisions that give the GST administration flexibility to deal with specific compliance and administrative situations.

👉 Read More → Section 147 – Deemed exports

Conclusion

Section 148 of the CGST Act is an important enabling provision that allows the Government to prescribe special procedures for certain classes of registered persons and specified GST processes.

The Government exercises this power on the recommendations of the GST Council and subject to conditions and safeguards. The special procedure may cover registration, furnishing of returns, payment of tax and administration of the notified persons.

The practical importance of Section 148 lies in its flexibility. GST applies to businesses with very different structures and compliance requirements, and a single procedure may not always be suitable for every situation. Section 148 allows targeted procedures to be created through notifications rather than requiring the main Act to contain detailed procedural rules for every special circumstance.

A notable recent example is Notification No. 22/2024-Central Tax, which prescribed a special procedure for rectification of certain demand orders involving ITC denied under Section 16(4), where the ITC subsequently became available under Section 16(5) or Section 16(6), subject to the prescribed conditions.

For taxpayers, the most important point is that Section 148 by itself does not tell a taxpayer exactly what to do. The taxpayer must identify the specific notification issued under Section 148, verify whether the taxpayer falls within its notified class, and then follow the prescribed procedure, conditions, safeguards and deadlines.

Therefore, Section 148 should be understood as a legal mechanism for creating specialised GST compliance procedures, rather than as a general exemption, waiver or relaxation provision. Its proper application depends on the particular notification issued under the section and the facts of the taxpayer’s case.

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