Section 157 of the Central Goods and Services Tax Act, 2017 provides legal protection to certain persons for actions taken or intended to be taken in good faith under the CGST Act and the rules made thereunder.
The provision is designed to protect specified authorities, officers and other authorised persons from suits, prosecutions or other legal proceedings in respect of acts performed in good faith while exercising functions under GST. It is therefore an important protection provision within Chapter XXI of the CGST Act, which contains miscellaneous provisions.
Section 157 contains two sub-sections. Sub-section (1) deals with the President, State President, Members, officers and other employees of the Appellate Tribunal and persons authorised by the Appellate Tribunal. Sub-section (2) deals with officers appointed or authorised under the CGST Act.
What Is Section 157 of the CGST Act?
Section 157 is titled “Protection of action taken under this Act.”
The provision protects specified persons where an act is:
- done in good faith; or
- intended to be done in good faith,
under the CGST Act or the rules made thereunder.
The protection is against:
- suits;
- prosecutions; and
- other legal proceedings.
The section does not create an unrestricted immunity for every action of a GST officer. The statutory protection is specifically connected with actions done or intended to be done in good faith under the Act or the rules.
Purpose of Section 157
GST officers and other persons authorised under the GST law are required to perform many statutory functions.
These functions can include:
- issuing notices;
- conducting inquiries;
- scrutinising returns;
- conducting assessments;
- carrying out inspections;
- exercising search and seizure powers;
- determining tax liabilities;
- recovering tax dues;
- passing orders;
- handling appeals and proceedings; and
- carrying out other duties under the CGST Act and Rules.
Because statutory functions can sometimes result in disputes or adverse consequences for taxpayers, Section 157 provides protection for actions performed in good faith while carrying out those legal functions.
The purpose is to allow authorised persons to perform their statutory responsibilities without facing legal proceedings merely because a bona fide official action has adversely affected someone.
Text and Structure of Section 157
Section 157 contains two sub-sections.
Section 157(1)
The first sub-section protects:
- the President of the Appellate Tribunal;
- State Presidents;
- Members;
- officers;
- other employees of the Appellate Tribunal; and
- any other person authorised by the Appellate Tribunal.
The protection applies to anything done or intended to be done in good faith under the CGST Act or the rules made thereunder.
Section 157(2)
The second sub-section protects:
- any officer appointed under the CGST Act; or
- any officer authorised under the CGST Act.
Again, the protection applies to anything done or intended to be done in good faith under the Act or Rules.
Section 157(1) – Protection for Appellate Tribunal Personnel
Section 157(1) specifically covers persons connected with the Appellate Tribunal.
The provision protects the President, State President, Members, officers and other employees of the Appellate Tribunal.
It also covers any other person authorised by the Appellate Tribunal.
The protection applies when the relevant act is done or intended to be done in good faith under the CGST Act or the rules made thereunder.
This is important because the Appellate Tribunal performs statutory functions under the GST appellate framework.
Who Is Covered by Section 157(1)?
The wording of Section 157(1) specifically identifies several categories.
President
The President of the Appellate Tribunal is covered.
State President
State Presidents of the Appellate Tribunal are also covered by the provision.
Members
Members of the Appellate Tribunal are protected for qualifying good-faith actions.
Officers
Officers of the Appellate Tribunal are included.
Other Employees
The protection also extends to other employees of the Appellate Tribunal.
Persons Authorised by the Appellate Tribunal
The provision additionally covers any other person authorised by the Appellate Tribunal.
Therefore, Section 157(1) is not restricted only to judicial members of the Tribunal. Its wording covers the categories specifically identified in the provision.
Section 157(2) – Protection for GST Officers
Section 157(2) applies to any officer appointed or authorised under the CGST Act.
This is broader in terms of the category of GST officers covered.
For example, where an officer is properly appointed or authorised under the CGST Act and performs a statutory function in good faith, Section 157(2) provides the statutory protection specified in the provision.
The protection covers acts done or intended to be done under:
- the CGST Act; or
- the rules made thereunder.
Meaning of “Good Faith”
The phrase “in good faith” is central to Section 157.
The protection is not simply based on the fact that a person is a GST officer or Tribunal employee.
The relevant act must be done or intended to be done in good faith under the Act or Rules.
In practical terms, good faith generally refers to honest and genuine exercise of a statutory function, rather than an action undertaken with an improper purpose.
Whether a particular action was actually done in good faith depends on the facts and circumstances of the case.
Why Good Faith Matters
The good-faith requirement creates an important boundary around the protection.
Section 157 should not be understood as saying that an officer can never face legal proceedings.
Instead, the statutory protection applies to qualifying actions that are done or intended to be done in good faith under the GST law.
Therefore, the section protects legitimate statutory functioning while retaining the significance of the good-faith requirement.
Protection Is Not the Same as Absolute Immunity
This is one of the most important aspects of Section 157.
The provision says that no suit, prosecution or other legal proceeding shall lie against the specified persons for anything which is in good faith done or intended to be done under the Act or Rules.
It therefore does not state that every act performed by a GST officer is immune from challenge.
The protection depends on the statutory conditions.
A taxpayer cannot be told that Section 157 automatically prevents every possible legal challenge merely because the person against whom action is proposed is a GST officer.
What Does “No Suit, Prosecution or Other Legal Proceedings” Mean?
Section 157 uses broad language.
It refers to:
- a suit;
- prosecution; and
- other legal proceedings.
The provision therefore seeks to provide protection against different forms of legal action when the statutory requirements are satisfied.
However, the precise application of the protection in any particular legal proceeding depends on the facts, the nature of the action and the applicable law.
Example – Assessment Order
Suppose a GST officer examines a taxpayer’s returns and, after following the applicable statutory procedure, passes an assessment or demand order.
The taxpayer may disagree with the officer’s conclusion.
The GST law provides specific appellate and other legal mechanisms for challenging such orders.
Section 157 does not mean that the taxpayer has no remedy against an order merely because the officer acted under the GST Act.
At the same time, where an officer performs a statutory function in good faith, Section 157 provides the protection specified by the provision against suits, prosecutions or other proceedings.
The distinction between challenging an official order through the statutory remedy and bringing a separate proceeding against the officer personally is therefore important.
Example – Inspection
Suppose an authorised officer conducts an inspection under the CGST Act after following the applicable statutory requirements.
The inspection may cause inconvenience to the taxpayer or may result in the discovery of discrepancies.
If the officer’s actions are performed in good faith under the Act and Rules, Section 157 can provide the statutory protection contemplated by the provision.
This does not eliminate the taxpayer’s statutory rights under other provisions of the GST law.
Example – Search and Seizure
The CGST Act contains specific provisions governing inspection, search and seizure.
Suppose an officer exercises those statutory powers in good faith and within the authority provided by the Act and Rules.
Section 157 may protect the officer from the types of proceedings specified in the section in respect of the qualifying action.
However, the existence of Section 157 does not replace the procedural requirements contained in the provisions governing search, seizure, detention or other statutory actions.
Section 157 and Taxpayer Remedies
Section 157 should not be confused with a provision that eliminates taxpayer remedies.
The CGST Act itself provides various mechanisms for taxpayers to:
- respond to notices;
- participate in hearings;
- seek rectification where available;
- file appeals;
- claim refunds;
- contest tax determinations; and
- pursue other remedies provided by law.
Section 157 primarily concerns protection of specified persons for qualifying good-faith actions.
Therefore, a taxpayer who believes that a GST order is incorrect should ordinarily examine the applicable statutory remedy rather than assuming that Section 157 itself decides the validity of the underlying order.
Section 157 and Section 156
Section 156 immediately precedes Section 157 and deals with persons deemed to be public servants.
Section 156 provides that persons discharging functions under the CGST Act are deemed to be public servants within the meaning of Section 21 of the Indian Penal Code as stated in the CGST Act.
Section 157 then provides protection for specified actions taken in good faith.
The two provisions therefore address different matters:
Section 156 → Status as public servants
Section 157 → Protection for qualifying good-faith actions
Section 157 and Section 158
Section 158 follows Section 157 and deals with disclosure of information by a public servant.
Section 158 places restrictions on disclosure of certain information contained in statements, returns, accounts, documents, evidence and proceedings under the GST law, subject to the exceptions provided in that section.
Thus, Sections 156, 157 and 158 form part of the broader miscellaneous framework dealing with persons performing GST functions and the legal treatment of their actions and information.
Section 157 and the Appellate Tribunal
The reference to the Appellate Tribunal in Section 157 is important.
The GST Appellate Tribunal deals with appeals under the GST appellate framework.
Its President, State Presidents, Members, officers, employees and persons authorised by it are expressly covered by Section 157(1), subject to the good-faith requirement.
This allows Tribunal personnel to carry out their statutory responsibilities without personal exposure to the types of legal proceedings covered by Section 157 for qualifying good-faith acts.
👉 Read More → Section 159 – Publication of information in respect of persons in certain cases
Section 157 and Officers Authorised Under the Act
Section 157(2) does not limit protection only to a particular rank of officer.
It refers to any officer appointed or authorised under the Act.
Therefore, the relevant question is whether the person falls within the statutory category and whether the action was done or intended to be done in good faith under the CGST Act or Rules.
“Done” and “Intended to Be Done”
Section 157 uses the expression:
“done or intended to be done.”
This is significant because the protection is not limited only to completed actions.
It also covers qualifying actions that are intended to be performed under the Act or Rules, provided the statutory conditions are satisfied.
The wording therefore recognises both completed and intended statutory acts.
Protection Under the CGST Act and Rules
Section 157 specifically refers to actions under:
- the CGST Act; and
- the rules made thereunder.
Therefore, the protection is connected with the exercise of statutory functions under the GST legal framework.
An act having no connection with official duties under the Act or Rules cannot simply be treated as protected merely because the person happens to be a GST officer.
Section 157 Does Not Validate an Unlawful Action
Another important distinction is between protection and validation.
Section 157 does not itself make an otherwise invalid statutory action valid.
The provision protects specified persons for qualifying good-faith acts.
It does not rewrite the substantive or procedural requirements of other sections of the CGST Act.
For example, if another provision requires:
- prior authorisation;
- notice;
- hearing;
- prescribed procedure;
- specified time limit; or
- compliance with particular conditions,
those requirements continue to operate.
Section 157 should therefore be read together with the substantive provision under which the action was taken.
Section 157 and Judicial Review
A taxpayer may, depending on the facts and applicable law, have remedies before appropriate legal forums against GST actions or orders.
Section 157 does not state that every GST action is beyond judicial scrutiny.
Its specific purpose is to provide protection against suits, prosecutions or other legal proceedings for qualifying good-faith acts of the persons identified in the section.
The exact scope of the protection in a particular case is ultimately a matter of legal interpretation based on the facts and applicable law.
Practical Example – Notice Issued by GST Officer
Suppose an officer issues a notice under a provision of the CGST Act.
The taxpayer believes that the notice is incorrect.
The taxpayer can use the applicable statutory procedure to respond to the notice and, where available, challenge the resulting order through the prescribed legal mechanism.
The mere existence of a disagreement does not by itself mean that the officer loses the statutory protection under Section 157 for an action genuinely taken in good faith under the Act or Rules.
Practical Example – Officer Makes an Error
Suppose an officer makes an honest procedural or legal error while performing an official GST function.
Whether Section 157 protects that particular action cannot be determined solely by the existence of the error.
The relevant question would include whether the action was done or intended to be done in good faith under the Act or Rules and whether the proceeding falls within the protection contemplated by Section 157.
The statutory protection should therefore not be treated as an automatic defence for every error.
Practical Example – Tribunal Proceedings
Suppose a Member or officer of the GST Appellate Tribunal performs an official function in connection with an appeal.
If the action falls within Section 157(1) and was done in good faith under the Act or Rules, the statutory protection can apply.
The protection exists because Tribunal personnel need to perform their adjudicatory and administrative responsibilities without being exposed to personal legal proceedings merely because their official action has an adverse consequence.
Section 157 and Good-Faith Official Functions
The underlying principle of Section 157 is that persons performing statutory functions need reasonable legal protection when they act honestly and within the statutory framework.
Without such protection, officers and Tribunal personnel could potentially face personal litigation simply because their official decisions or actions adversely affected another party.
At the same time, the statutory requirement of good faith prevents the provision from being treated as unlimited protection for every possible act.
Difference Between Section 157 and Section 160
Section 160 deals with proceedings, etc., not to be invalid on certain grounds.
Section 157, in contrast, concerns protection of persons for actions done or intended to be done in good faith.
The distinction can be expressed simply:
| Provision | Main subject |
|---|---|
| Section 157 | Protection of specified persons for good-faith actions |
| Section 160 | Validity of proceedings despite specified defects |
Both provisions provide legal protection within Chapter XXI, but they operate in different ways.
Difference Between Section 157 and Section 161
Section 161 deals with rectification of errors apparent on the face of the record.
Section 157 does not provide a mechanism for correcting an order or proceeding.
Instead, it provides protection to specified persons for qualifying actions.
Therefore:
Section 157 → Protection
Section 161 → Rectification of apparent errors
Difference Between Section 157 and Section 162
Section 162 deals with bar on jurisdiction of civil courts in specified GST matters.
Section 157 does not generally bar civil-court jurisdiction.
Instead, it protects specified persons from suits, prosecutions or other legal proceedings for qualifying good-faith actions under the Act and Rules.
These are therefore separate legal concepts.
Difference Between Section 157 and Section 163
Section 163 deals with levy of fees.
Section 157 has no connection with GST fees.
Its subject is protection of specified persons performing functions under the GST law.
Practical Compliance Considerations for Taxpayers
A taxpayer dealing with a GST officer or Tribunal should understand the difference between an official statutory action and a personal claim against an officer.
Where the taxpayer disagrees with an order or action, the taxpayer should identify:
- The provision under which the action was taken.
- Whether a notice or order has been issued.
- Whether a hearing opportunity is available.
- Whether an appeal is available.
- Whether a rectification mechanism applies.
- Whether another statutory remedy is available.
- Whether the issue concerns the validity of the official action or a separate allegation against an individual.
👉 Read More → Section 157 – Protection of action taken under this Act
Section 157 should then be considered in its proper context.
Key Points of Section 157
The major points of Section 157 can be summarised as follows:
- Section 157 is titled “Protection of action taken under this Act.”
- It is contained in Chapter XXI of the CGST Act.
- The provision contains two sub-sections.
- Section 157(1) covers specified persons associated with the Appellate Tribunal.
- These include the President, State Presidents, Members, officers and other employees of the Appellate Tribunal.
- It also covers persons authorised by the Appellate Tribunal.
- Section 157(2) covers officers appointed or authorised under the CGST Act.
- The protection applies to suits, prosecutions and other legal proceedings.
- The protection is available for anything done or intended to be done in good faith.
- The action must be under the CGST Act or the rules made thereunder.
- Good faith is therefore an important condition of the statutory protection.
- Section 157 does not create an unlimited immunity for every act of a GST officer.
- It does not eliminate the substantive requirements of other provisions of the CGST Act.
- It does not automatically eliminate statutory remedies available to taxpayers.
- Section 157 should be distinguished from Section 156 concerning public servants.
- It should also be distinguished from Section 160 concerning validity of proceedings.
- Section 161 deals with rectification, while Section 157 deals with protection.
- Section 162 deals with the bar on civil-court jurisdiction and is different from Section 157.
- The provision is intended to protect qualifying good-faith performance of statutory functions under GST.
Conclusion
Section 157 of the CGST Act provides statutory protection to specified persons for actions done or intended to be done in good faith under the CGST Act or the rules made thereunder.
Section 157(1) specifically covers the President, State Presidents, Members, officers and other employees of the Appellate Tribunal, as well as persons authorised by the Appellate Tribunal. Section 157(2) covers officers appointed or authorised under the CGST Act.
The protection operates against suits, prosecutions and other legal proceedings in relation to qualifying acts. However, the phrase “in good faith” is central to the provision. Section 157 should therefore not be interpreted as providing unlimited immunity for every action of a GST officer or Tribunal personnel.
The provision also does not replace the statutory rights and remedies available to taxpayers. If a taxpayer disagrees with a GST notice, assessment, demand, recovery action or other order, the appropriate remedy must be examined under the relevant provisions of the GST law.
Section 157 is best understood as a protection for persons performing statutory functions honestly and within the GST framework. It works alongside other provisions of Chapter XXI, including Section 156 on public servants, Section 160 on validity of proceedings, Section 161 on rectification and Section 162 on the jurisdiction of civil courts.
For taxpayers and GST professionals, understanding Section 157 is important because it clarifies the legal protection available to GST authorities and Tribunal personnel while also highlighting that such protection is connected to good-faith action under the Act or Rules.
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