Section 156 – Persons Deemed to Be Public Servants

Section 156 of the Central Goods and Services Tax Act, 2017 deals with the status of persons who discharge functions under the GST law. It provides that all persons discharging functions under the CGST Act are deemed to be public servants within the meaning of Section 21 of the Indian Penal Code.

The provision is short, but it has an important legal purpose. GST administration involves officers and other persons performing statutory functions such as assessment, scrutiny, inspection, investigation, adjudication, recovery and other functions under the Act. Section 156 gives persons discharging those functions the statutory status of public servants for the purpose specified in the provision.

Section 156 is part of Chapter XXI – Miscellaneous of the CGST Act and should be read along with related provisions such as Section 157, which deals with protection for actions taken in good faith, and Section 158, which deals with disclosure of information by a public servant.

What Is Section 156 of the CGST Act?

Section 156 is titled:

“Persons deemed to be public servants.”

The provision states:

“All persons discharging functions under this Act shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code.”

Thus, the section contains a single basic rule: persons performing functions under the CGST Act are treated as public servants for the statutory purpose referred to in Section 156.

Meaning of “Persons Discharging Functions Under This Act”

The expression used in Section 156 is broad.

It does not say only “officers appointed under the Act.” Instead, it refers to all persons discharging functions under the CGST Act.

GST administration involves several statutory functions, including:

• registration-related functions;
• scrutiny of returns;
• assessment;
• audit;
• inspection;
• search and seizure;
• investigation;
• adjudication;
• recovery;
• refund processing;
• appellate functions;
• advance ruling functions; and
• other functions assigned under the GST framework.

Therefore, the section focuses on the function being discharged under the Act, rather than merely on the person’s designation.

Why Does Section 156 Deem Such Persons to Be Public Servants?

GST authorities exercise statutory powers on behalf of the Government.

For example, authorised officers may:

• examine records;
• issue notices;
• conduct proceedings;
• require information;
• inspect business premises;
• conduct investigations;
• determine tax liabilities;
• recover government dues; or
• perform other functions prescribed under the GST law.

Section 156 establishes that persons discharging such functions under the Act are deemed to be public servants for the relevant legal purpose.

This provides a statutory link between the GST administration and the legal framework governing public servants.

Section 156 Is a Deeming Provision

The words “shall be deemed to be” are important.

A deeming provision creates a legal status for the purpose specified by the statute.

Section 156 therefore does not merely describe GST officers as public servants in an informal sense. It expressly provides that persons discharging functions under the CGST Act shall be treated as public servants within the meaning of the provision referred to in Section 156.

The statutory language is therefore important when interpreting the section.

Section 156 and Section 21 of the Indian Penal Code

Section 156 specifically refers to Section 21 of the Indian Penal Code.

The current consolidated CGST Act continues to contain this wording. The official India Code version of the CGST Act reproduces Section 156 as referring to Section 21 of the Indian Penal Code, while the CBIC consolidated Act also contains the same statutory language.

Accordingly, when explaining Section 156, it is important to distinguish the wording of the CGST Act from any separate discussion about subsequent changes in the general criminal-law framework.

For the purpose of a Section 156 article, the statutory reference remains the reference contained in Section 156 itself.

Who Can Fall Within Section 156?

Section 156 uses the expression “all persons discharging functions under this Act.”

The provision should therefore be understood according to the functions being performed under the CGST Act.

Depending on the particular statutory function, persons involved in GST administration may include:

• Central tax officers;
• authorised officers;
• officers exercising assessment functions;
• officers conducting audit;
• officers carrying out inspection or investigation;
• officers involved in recovery proceedings; and
• other persons who are legally assigned functions under the CGST framework.

The exact scope in an individual situation depends on whether the person is actually discharging a function under the Act.

Section 156 Does Not Mean Every Person Working in a GST-Related Environment Is Automatically a Public Servant

The wording of Section 156 should not be read as covering every person who has any connection with GST.

The statutory requirement is that the person must be discharging functions under the CGST Act.

For example, a private accountant preparing GST returns for a business is not, merely because the work concerns GST, transformed into a public servant under Section 156.

Similarly, a taxpayer, consultant or private service provider does not become a public servant simply because the person interacts with the GST system.

The statutory language focuses on persons discharging functions under the Act.

Section 156 and GST Officers

GST officers exercise various powers under the CGST Act.

For example, the Act contains separate provisions concerning:

• appointment of officers;
• powers of officers;
• inspection;
• search and seizure;
• summons;
• assessment;
• audit;
• recovery; and
• appeals.

Section 156 does not itself grant these powers.

Instead, it establishes the public-servant status of persons discharging functions under the Act.

This distinction is important.

Substantive Powers

Other sections of the CGST Act provide specific powers.

Status Under Section 156

Section 156 provides the statutory public-servant status.

Therefore, Section 156 should not be interpreted as an independent source of assessment, search, arrest or recovery powers.

Section 156 and Section 67

Section 67 deals with power of inspection, search and seizure.

An authorised officer exercising powers under Section 67 is performing a statutory GST function.

Section 156 separately establishes the public-servant status of persons discharging functions under the CGST Act.

The two provisions therefore have different purposes:

Provision	Main subject
Section 67	Inspection, search and seizure
Section 156	Persons discharging GST functions deemed public servants

Section 156 does not itself authorise a search or seizure.

The authority to conduct a search or seizure must come from the relevant substantive provision, such as Section 67, and the applicable conditions must be satisfied.

Section 156 and Section 70

Section 70 deals with the power of a proper officer to summon persons to give evidence or produce documents or other things during an inquiry.

Where an officer exercises such statutory functions, Section 156 provides the relevant public-servant status under its own terms.

Again, Section 156 does not create the summons power.

The summons power comes from Section 70, while Section 156 deals with the status of persons discharging functions under the Act.

Section 156 and Assessment Proceedings

GST assessment provisions allow proper officers to perform various functions for determining tax liability.

For example, the CGST Act contains provisions relating to:

• self-assessment;
• provisional assessment;
• scrutiny of returns;
• assessment of non-filers;
• assessment of unregistered persons; and
• summary assessment.

An officer performing these statutory functions is discharging functions under the Act.

Section 156 therefore becomes relevant to the legal status of such persons.

Section 156 and Audit

GST law provides for audit by tax authorities.

During an audit, the authorised officer may examine relevant records, accounts and other information as permitted under the GST law.

The officer’s audit powers arise from the relevant GST provisions, particularly Section 65.

Section 156 separately provides the public-servant status for persons discharging functions under the Act.

Thus:

Section 65 → Audit powers

Section 156 → Public-servant status

Section 156 and Recovery Proceedings

GST law contains detailed provisions for recovery of unpaid tax and other amounts.

Section 79, for example, provides various modes of recovery where an amount payable under the Act remains unpaid.

An officer performing a recovery function under the CGST Act is discharging a statutory function under the Act.

Section 156 provides the corresponding statutory treatment as a public servant.

However, the actual recovery power must always be traced to the relevant recovery provision and its applicable rules.

Section 156 and Advance Ruling Authorities

The CGST Act also contains provisions concerning advance ruling authorities.

Chapter XVII deals with advance rulings, including:

• Authority for Advance Ruling;
• Appellate Authority for Advance Ruling;
• National Appellate Authority framework;
• applications;
• appeals;
• orders; and
• related procedures.

Where persons discharge functions under the CGST Act, the wording of Section 156 is relevant to their statutory status.

The provision should nevertheless be applied according to the actual statutory function being performed.

Section 156 and Section 157

Section 157 follows Section 156 and deals with protection of action taken under the CGST Act.

This makes the relationship between the provisions particularly useful to understand.

Section 156

Deals with persons discharging functions under the Act being deemed to be public servants.

Section 157

Provides protection for specified actions done or intended to be done in good faith under the Act or rules.

The two sections therefore address different legal issues.

Section 156 concerns the status of the person.

Section 157 concerns protection for specified acts done in good faith.

Section 157 Is Not an Unlimited Protection

Section 157 provides protection for certain actions taken in good faith under the CGST Act or rules.

It does not mean that every action of every GST officer is automatically protected regardless of circumstances.

The statutory wording refers specifically to actions done or intended to be done in good faith under the Act or rules.

Therefore, Section 157 should be read according to its own language and conditions.

Section 156 and Section 157 should not be merged into one concept.

Section 156 and Section 158

Section 158 deals with disclosure of information by a public servant.

It generally restricts disclosure of specified information contained in statements, returns, accounts, documents and records obtained under the GST law, subject to the exceptions contained in the section.

The sequence is therefore significant:

• Section 156 – persons discharging functions are deemed public servants;
• Section 157 – protection of specified actions taken under the Act;
• Section 158 – disclosure of information by a public servant.

The three provisions form part of the miscellaneous provisions of the CGST Act.

👉 Read More → Section 158 – Disclosure of information by a public servant

Section 156 and Confidentiality of Taxpayer Information

GST authorities handle substantial amounts of taxpayer information.

This can include:

• GST returns;
• invoices;
• books of account;
• business contracts;
• financial information;
• transaction records;
• investigation records; and
• other information submitted or obtained under the Act.

Section 158 contains specific provisions concerning disclosure of such information.

Section 156 establishes the public-servant status referred to in the GST framework, while Section 158 separately regulates disclosure.

Therefore, taxpayer information should not be treated as freely disclosable merely because it is available with a GST authority.

Example – GST Officer Conducting Audit

Suppose a Central Tax officer is authorised to conduct an audit of a registered person.

The officer examines:

• sales invoices;
• purchase records;
• input tax credit records;
• financial statements; and
• other GST-related documents.

The officer is performing statutory functions under the CGST Act.

Section 156 provides that persons discharging functions under the Act are deemed to be public servants within the meaning specified in the provision.

The actual authority to conduct the audit, however, comes from the applicable audit provisions of the GST law.

Example – Officer Conducting Investigation

Suppose an officer is conducting an investigation into suspected wrongful availment of input tax credit.

The officer may exercise specific investigation powers available under the CGST Act.

Section 156 does not independently authorise the investigation.

Instead, it establishes the relevant public-servant status of the person discharging the statutory function.

The investigation must still comply with the substantive and procedural requirements of the relevant GST provisions.

Example – Recovery Officer

Suppose a registered person has an unpaid GST liability and the proper officer initiates recovery proceedings under the CGST Act.

The officer is performing a statutory GST function.

Section 156 applies to persons discharging functions under the Act, while the actual recovery mechanism is governed by the applicable provisions, such as Section 79 and the relevant rules.

Is Section 156 a Power-Giving Provision?

Not in the usual sense.

Section 156 is primarily a status provision.

It does not itself provide:

• power to search;
• power to arrest;
• power to summon;
• power to assess;
• power to recover tax; or
• power to inspect premises.

Those powers are found in other provisions of the CGST Act.

Section 156 establishes that persons discharging functions under the Act are deemed to be public servants for the purpose specified in the section.

Why Is the Public-Servant Status Important?

The public-servant status is relevant because GST officials exercise statutory authority while administering tax law.

It reinforces the official nature of their functions and connects the GST administration with the legal framework applicable to public servants.

It also forms part of the broader statutory framework dealing with:

• protection of actions;
• confidentiality;
• disclosure of information; and
• legal consequences associated with official functions.

Section 156 and Good Faith

Section 156 itself does not contain the phrase “good faith.”

The concept of good faith appears prominently in Section 157, which deals with protection of specified actions.

Therefore, it is important not to incorrectly state that Section 156 itself provides immunity for good-faith actions.

A correct distinction is:

Section 156 → Deemed public-servant status

Section 157 → Protection for specified actions done or intended to be done in good faith

Section 156 and Taxpayer Rights

Section 156 does not remove or reduce the taxpayer’s rights under the GST Act.

A taxpayer continues to have statutory rights relating to:

• notices;
• opportunity of hearing where prescribed;
• appeals;
• refunds;
• assessment proceedings;
• adjudication;
• revision and rectification where applicable; and
• other remedies available under the GST law.

The fact that an officer is deemed to be a public servant does not mean that the taxpayer loses the procedural safeguards available under the CGST Act.

Section 156 and Legal Accountability

The public-servant status should not be understood as providing unrestricted authority.

A GST officer must exercise powers according to the applicable statutory provision.

For example, where a particular provision requires:

• authorisation;
• reasons to believe;
• prior approval;
• notice;
• hearing;
• specified time limits; or
• other procedural requirements,

those requirements continue to apply.

Section 156 does not override those conditions.

Relationship Between Sections 153 to 158

Section 156 becomes easier to understand when viewed alongside the surrounding provisions of Chapter XXI.

Section	Subject
Section 153	Taking assistance from an expert
Section 154	Power to take samples
Section 155	Burden of proof
Section 156	Persons deemed to be public servants
Section 157	Protection of action taken under the Act
Section 158	Disclosure of information by a public servant

This structure shows that Section 156 forms part of a wider set of miscellaneous provisions dealing with GST administration, evidence, official functions and information.

Section 156 and Section 155

Section 155 provides that where a person claims eligibility for input tax credit under the CGST Act, the burden of proving that claim lies on that person.

Section 156 has a completely different purpose.

Section 155

Deals with the burden of proof for an ITC claim.

Section 156

Deals with the status of persons discharging functions under the Act.

The two sections are adjacent but deal with different legal concepts.

Section 156 and Section 160

Section 160 provides that certain assessment, adjudication, appeal, rectification, notice, summons and other proceedings are not invalid merely because of a mistake, defect or omission, subject to the conditions specified in that section.

Section 156 does not deal with validity of proceedings.

Therefore:

Section 156 → Public-servant status

Section 160 → Effect of certain mistakes, defects or omissions in proceedings

Practical Importance for Taxpayers

A taxpayer dealing with GST authorities should understand that officers exercising statutory functions are performing official functions under the CGST Act.

At the same time, taxpayers should identify the specific statutory provision under which an officer is acting.

For example, if an officer:

• issues a summons → examine Section 70;
• conducts a search → examine Section 67;
• conducts an audit → examine Section 65;
• initiates recovery → examine Section 79;
• issues an assessment order → examine the relevant assessment provision.

Section 156 can then be understood as the provision dealing with the public-servant status of persons discharging those functions.

Common Misunderstandings About Section 156

Misunderstanding 1: Section 156 Gives Officers All GST Powers

This is incorrect.

The powers of GST officers come from the relevant provisions of the CGST Act and rules.

Section 156 deals with their status as public servants.

Misunderstanding 2: Every Person Who Deals With GST Is a Public Servant

This is also incorrect.

The provision refers to persons discharging functions under the Act.

A private taxpayer, consultant or accountant does not become a public servant merely by dealing with GST matters.

Misunderstanding 3: Public-Servant Status Means Officers Can Act Without Following Procedures

This is incorrect.

GST officers must exercise their statutory powers within the conditions and procedures prescribed by the relevant provisions.

Misunderstanding 4: Section 156 Gives Immunity From Legal Proceedings

Section 156 itself does not provide such immunity.

Protection for specified actions done or intended to be done in good faith is dealt with separately under Section 157.

Misunderstanding 5: Section 156 Is About Taxpayer Confidentiality

Not directly.

Section 156 deals with public-servant status. Disclosure of information is separately addressed under Section 158.

👉 Read More → Section 156 – Persons deemed to be public servants

Important Points to Remember About Section 156

The key points of Section 156 are:

1. Section 156 is titled “Persons deemed to be public servants.”
2. It is contained in Chapter XXI of the CGST Act.
3. It contains a single substantive rule.
4. All persons discharging functions under the CGST Act are deemed to be public servants.
5. The statutory reference is to Section 21 of the Indian Penal Code.
6. The provision focuses on persons discharging functions under the Act.
7. Section 156 does not itself grant search, arrest, summons or assessment powers.
8. Specific GST powers must come from the relevant provisions of the Act.
9. Section 156 is a status provision rather than a general power-conferring provision.
10. Section 157 separately deals with protection for specified actions taken in good faith.
11. Section 158 separately deals with disclosure of information by a public servant.
12. Section 156 should be distinguished from Section 70, which deals with summons by a proper officer.
13. It should also be distinguished from Section 67, which deals with inspection, search and seizure.
14. It should be distinguished from Section 79, which deals with recovery of tax.
15. The public-servant status does not remove taxpayer rights or procedural safeguards.
16. GST officers must continue to act within the authority and conditions prescribed by the applicable GST provisions.
17. The expression “all persons discharging functions under this Act” makes the nature of the statutory function important when considering the provision.

Conclusion

Section 156 of the CGST Act is a short but important provision that establishes the legal status of persons performing functions under the GST law. It provides that all persons discharging functions under the CGST Act shall be deemed to be public servants within the meaning of Section 21 of the Indian Penal Code.

The purpose of the provision is not to give GST officers unlimited powers. The substantive powers of inspection, search, seizure, summons, assessment, audit, investigation and recovery are provided by separate provisions of the CGST Act. Section 156 instead establishes the public-servant status of persons who discharge statutory functions under the Act.

This distinction is important for understanding GST law correctly. For example, Section 67 provides the framework for inspection, search and seizure, Section 70 deals with summons, Section 65 deals with audit and Section 79 deals with recovery. Section 156 does not replace any of these provisions.

Section 156 should also be read with the provisions immediately following it. Section 157 deals with protection of specified actions taken in good faith, while Section 158 deals with disclosure of information by a public servant.

For taxpayers, the practical takeaway is that GST authorities performing statutory functions are treated as public servants under Section 156, but they must still exercise their powers according to the specific provisions, authorisations, procedures and safeguards prescribed under the GST law.

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