Section 168 – Power to Issue Instructions or Directions

Section 168 of the Central Goods and Services Tax Act, 2017 deals with the power of the Board to issue instructions, directions and orders for the uniform implementation of the GST law.

GST is administered through a large network of central tax officers and field formations across India. Since different officers may otherwise interpret or implement procedural provisions differently, Section 168 provides a statutory mechanism through which the Board can issue directions to central tax officers to promote consistency in the implementation of the CGST Act.

The provision also identifies certain sections where the word “Commissioner” refers specifically to a Commissioner or Joint Secretary posted in the Board, who exercises the specified powers with the approval of the Board. The current consolidated CGST Act contains Section 168 immediately before Section 168A, which separately deals with extension of time limits in special circumstances.

What Is Section 168 of the CGST Act?

Section 168 is titled “Power to issue instructions or directions.”

The provision has two main parts:

• Section 168(1) gives the Board power to issue orders, instructions or directions to central tax officers for uniformity in implementation of the CGST Act.
• Section 168(2) identifies specific provisions where the Commissioner mentioned in those provisions means a Commissioner or Joint Secretary posted in the Board, who exercises the specified powers with the approval of the Board.

The provision is therefore concerned primarily with administrative uniformity and the exercise of specified statutory powers within the central tax administration.

Section 168(1) – Power of the Board to Issue Instructions or Directions

Section 168(1) provides that the Board may, where it considers it necessary or expedient for the purpose of uniformity in the implementation of the CGST Act, issue such orders, instructions or directions to central tax officers as it considers appropriate.

Once such orders, instructions or directions are issued, the officers and other persons employed in implementing the Act are required to observe and follow them.

The central idea can be understood as:

Board → Instructions/Directions → Central Tax Administration → Uniform Implementation

This power helps reduce inconsistent administrative practices between different central tax formations.

Why Is Section 168 Important?

GST is a nationwide indirect tax system administered through numerous offices and officers.

The same statutory provision may involve taxpayers in different:

• States and Union territories;
• Commissionerates;
• ranges;
• divisions; and
• tax jurisdictions.

Without administrative instructions, similar situations could potentially be handled differently by different field formations.

Section 168 allows the Board to communicate a common approach where necessary to promote uniform implementation.

The GST Council records also show the practical use of Section 168(1) for issuing clarifications and guidelines to field formations where uniformity in implementation is required.

Who Is the “Board” Under Section 168?

The “Board” referred to in the CGST Act is the Central Board of Indirect Taxes and Customs (CBIC).

Therefore, when Section 168(1) refers to the Board issuing instructions or directions to central tax officers, it refers to the competent central indirect tax Board administering the CGST framework.

The power is an administrative power intended to support consistent implementation of the law.

What Can the Board Issue Under Section 168(1)?

The provision specifically refers to:

• orders;
• instructions; and
• directions.

These can be issued where the Board considers them necessary or expedient for achieving uniformity in the implementation of the CGST Act.

Such communications may deal with procedural interpretation, administrative implementation, documentation requirements or other matters connected with implementation of the GST law, subject to the limits of the statutory framework.

Section 168 Is a Power for Uniformity

The phrase “for the purpose of uniformity in the implementation of this Act” is central to Section 168(1).

The provision is not simply a general power to rewrite the GST Act.

Its stated purpose is to ensure uniform implementation.

For example, if different field formations are adopting different approaches to a particular procedural issue, the Board can issue appropriate instructions or directions to bring administrative implementation into a consistent framework.

Examples of Instructions Under Section 168

Section 168 has been used in practice for issuing GST instructions and clarifications.

For example, CBIC Circular No. 17/17/2017-GST was issued in exercise of powers under Section 168(1) to prescribe a temporary procedure for manual filing and processing of certain refund claims when the relevant electronic refund module was not available. The circular expressly stated that the procedure was being laid down for ensuring uniformity.

Similarly, CBIC Circular No. 41/15/2018-GST issued instructions concerning interception and inspection of conveyances and goods in movement, stating that the instructions were issued under Section 168(1) to ensure uniformity in implementation across field formations.

These examples demonstrate the practical administrative role of Section 168.

Section 168 and GST Circulars

GST circulars are an important example of how the power under Section 168(1) is used.

Where a circular states that it is issued under Section 168(1), it indicates that the Board is exercising its statutory power to provide instructions or clarification for implementation by the central tax administration.

For example, CBIC circulars have repeatedly stated that they are issued under Section 168(1) to ensure uniformity in the implementation of GST law across field formations.

Are Section 168 Instructions Binding on Central Tax Officers?

Yes.

Section 168(1) expressly provides that once the Board issues such orders, instructions or directions, the central tax officers and other persons employed in the implementation of the Act are required to observe and follow them.

This is an important distinction between the administrative effect of a Board instruction and the general legal effect of the underlying GST Act.

A central tax officer implementing the Act is required to follow applicable Board instructions issued under the statutory authority of Section 168.

Does Section 168 Change the CGST Act?

Section 168 does not itself amend the CGST Act.

An instruction or direction issued under Section 168 is an administrative instrument for implementation of the existing statutory framework.

The Board’s power must therefore be exercised within the authority granted by the Act.

The actual provisions of the CGST Act, the applicable rules and valid notifications remain the statutory framework governing GST liability.

Section 168 Does Not Create a New Tax

A Board instruction under Section 168 is not itself a charging provision.

The levy of central GST comes from the relevant charging provisions of the CGST Act, principally Section 9 and other applicable provisions.

Section 168 is instead concerned with the implementation of the law.

Therefore, Section 168 should not be confused with a provision that independently imposes GST, creates a new taxable supply or changes a statutory rate.

Section 168 and the Power of the Board to Make Rules

Section 168 should also be distinguished from Section 164, which deals with the power of the Government to make rules.

Section 164

Section 164 concerns the Government’s power to make rules, subject to the statutory framework and recommendations where required.

Section 168

Section 168 concerns the Board’s power to issue orders, instructions and directions for uniform implementation.

Therefore:

Provision	Main function
Section 164	Power of Government to make rules
Section 165	Power to make regulations
Section 166	Laying of rules, regulations and notifications
Section 167	Delegation of powers
Section 168	Instructions or directions for uniform implementation
Section 168A	Extension of time limits in special circumstances

The current CGST Act places these provisions consecutively in Chapter XXI.

Section 168 and Section 167

Section 167 deals with delegation of powers.

Under Section 167, the Commissioner may, by notification and subject to specified conditions, direct that a power exercisable by an authority or officer under the Act may also be exercised by another specified authority or officer.

Section 168 is different.

• Section 167 → Delegation of statutory powers
• Section 168 → Administrative instructions and directions for uniform implementation

The two provisions therefore serve different purposes.

Section 168(2) – Meaning of “Commissioner” in Certain Provisions

Section 168(2) contains another important rule.

It provides that the Commissioner specified in certain provisions of the CGST Act shall mean a Commissioner or Joint Secretary posted in the Board, and that such Commissioner or Joint Secretary shall exercise the specified powers with the approval of the Board.

This is an administrative allocation of specified statutory powers within the Board.

It should not be confused with the general definition of Commissioner used throughout the Act.

Provisions Covered by Section 168(2)

The current consolidated text identifies the Commissioner referred to in several provisions, including:

• Section 2(91);
• Section 5(3);
• Section 25(9)(b);
• Section 35(3) and 35(4);
• Section 37(1);
• Section 39(6);
• Section 44;
• Section 52(4) and 52(5);
• Section 143(1), subject to the statutory exception contained there;
• Section 158(3)(l); and
• Section 167.

The precise list has been amended over time as the CGST Act itself has been amended. The current consolidated India Code text reflects the amendments incorporated into the Act.

Why Does Section 168(2) Matter?

Certain provisions of the CGST Act require a power to be exercised by a specified Commissioner.

Section 168(2) clarifies that, for the provisions listed there, the Commissioner referred to is a Commissioner or Joint Secretary posted in the Board, exercising the power with the Board’s approval.

This creates a specific statutory mechanism for powers that Parliament has assigned at the Board level.

Section 168 and Section 37

Section 168(2) includes Section 37(1) among the provisions where the specified Commissioner means a Commissioner or Joint Secretary posted in the Board, subject to Board approval.

Section 37 concerns furnishing details of outward supplies.

The inclusion in Section 168(2) therefore reflects the importance of central-level administration of the statutory framework relating to outward supply information.

Section 168 and Section 39

Section 39 deals with furnishing GST returns.

Section 168(2) includes Section 39(6) in the list of provisions referring to the specified Commissioner.

The provision therefore establishes a Board-level administrative mechanism for the power assigned under that particular subsection.

Section 168 and Section 44

Section 44 concerns the annual return.

The current Section 168(2) includes Section 44 among the provisions for which the specified Commissioner means a Commissioner or Joint Secretary posted in the Board, exercising the relevant power with Board approval.

This reflects the legislative amendments made to the GST return framework over time.

Section 168 and Section 52

Section 52 deals with collection of tax at source by electronic commerce operators.

Section 168(2) identifies specified powers under Section 52 as Board-level powers to be exercised by a Commissioner or Joint Secretary posted in the Board with Board approval.

This is an example of how Section 168(2) identifies particular statutory functions that are centrally administered.

Section 168 and Section 143

Section 143 concerns the job-work procedure.

Section 168(2) includes Section 143(1), subject to the statutory exception stated in that provision.

This demonstrates that Section 168(2) does not simply refer to entire sections in every case. The precise wording and exceptions contained in the provision must be considered.

Section 168 and Section 167

Section 167 itself appears in the list under Section 168(2).

This means that the Commissioner referred to in Section 167 is, for the purposes of that provision, a Commissioner or Joint Secretary posted in the Board, exercising the relevant power with the approval of the Board.

Difference Between an Instruction and a Notification

A notification is a statutory instrument issued by the competent authority under the power granted by the Act.

An instruction or direction under Section 168 is an administrative communication issued by the Board for implementation of the law.

👉 Read More → Section 169 – Service of notice in certain circumstances

They should not automatically be treated as interchangeable.

For example, a tax rate prescribed by a valid notification derives its authority from the relevant statutory provision and notification-making power. A Section 168 instruction cannot simply replace the statutory mechanism for prescribing a tax rate.

Difference Between Section 168 and Section 164

This distinction is particularly important for GST compliance.

Section 164 – Rules

The Government can make rules under the authority granted by Section 164, subject to the conditions specified in the Act.

Section 168 – Instructions

The Board can issue instructions or directions to central tax officers for uniform implementation.

A rule and an administrative instruction therefore have different statutory foundations and functions.

Can a Taxpayer Rely on a Section 168 Circular?

A taxpayer may consider applicable CBIC circulars and instructions when determining the administrative interpretation being followed by the central tax department.

However, the legal effect of a particular circular depends on its wording, statutory basis and the issue involved.

A circular cannot be treated as a substitute for the CGST Act, applicable rules or valid notifications.

For taxpayers, it is therefore important to examine:

1. the relevant section of the Act;
2. the applicable rules;
3. relevant notifications;
4. the applicable CBIC circular or instruction; and
5. subsequent amendments or clarifications.

Section 168 and Uniformity Across Field Formations

One of the clearest purposes of Section 168 is to avoid inconsistent implementation by different central tax formations.

For example, if a procedural issue is creating different practices across Commissionerates, the Board can issue a common instruction.

CBIC has used Section 168(1) for precisely this type of administrative purpose. Circular No. 41/15/2018-GST, for example, issued instructions concerning interception and inspection of goods in movement and expressly referred to uniformity across field formations.

Section 168 Does Not Replace Judicial Interpretation

Courts and appellate authorities interpret the law within their jurisdiction.

Section 168 gives the Board an administrative power to guide central tax officers for uniform implementation.

Therefore, a Board instruction and a judicial decision are different types of legal material.

A taxpayer dealing with a disputed issue should consider the applicable statutory provision, rules, notifications, binding judicial decisions and relevant Board instructions together.

Section 168 and GST Circulars – Practical Example

Suppose taxpayers across several jurisdictions face uncertainty regarding the procedure for a particular refund process.

If the Board determines that a uniform procedure is necessary, it may issue a circular or instruction under Section 168(1).

Central tax officers are then required to follow the applicable Board instruction.

The objective is to ensure that taxpayers are not subjected to materially different administrative procedures merely because their central tax jurisdiction is different.

Section 168 and Goods in Transit – Practical Example

The Board has used Section 168(1) to issue instructions concerning interception and inspection of goods in movement.

Circular No. 41/15/2018-GST provided instructions on interception and inspection, including designation of proper officers, verification of documents and procedures following interception. The circular expressly stated that it was issued under Section 168(1) to ensure uniformity across field formations.

This illustrates how Section 168 operates as an administrative coordination mechanism.

Section 168 and Refund Procedure – Practical Example

CBIC Circular No. 17/17/2017-GST was issued under Section 168(1) when the electronic refund module was not available for certain refund claims.

The circular prescribed a temporary manual procedure and stated that it was intended to ensure uniformity in processing refund claims.

This shows that Section 168 can be used to address practical implementation issues arising during GST administration.

Important Limitations of Section 168

Although Section 168 gives significant administrative power to the Board, the provision has an important statutory purpose and framework.

The power is linked to:

• implementation of the CGST Act;
• uniformity;
• central tax officers; and
• administrative directions.

It should therefore not be understood as an unrestricted power to alter substantive provisions enacted by Parliament.

Section 168 and Taxpayer Compliance

Taxpayers should monitor relevant CBIC instructions and circulars because they can affect how central tax officers administer GST provisions.

For practical GST compliance, businesses should maintain a system for monitoring:

• CBIC circulars;
• instructions;
• advisories;
• notifications;
• rule amendments;
• statutory amendments; and
• important judicial decisions.

This is particularly important in areas where the GST law is frequently updated.

Section 168 – Important Points to Remember

The major points of Section 168 can be summarised as follows:

1. Section 168 deals with the power to issue instructions or directions.
2. The Board may issue orders, instructions or directions to central tax officers.
3. The stated purpose is to ensure uniformity in implementation of the CGST Act.
4. Central tax officers and other persons employed in implementing the Act are required to observe applicable Board instructions or directions.
5. Section 168 is primarily an administrative implementation provision.
6. It does not itself operate as a charging section.
7. It does not independently create a new tax liability.
8. It should be distinguished from Section 164, which concerns the Government’s power to make rules.
9. It should also be distinguished from Section 167, which deals with delegation of powers.
10. Section 168(2) identifies specific provisions where the specified Commissioner means a Commissioner or Joint Secretary posted in the Board.
11. The Commissioner or Joint Secretary exercises the specified powers with the approval of the Board.
12. The current text covers specified provisions relating to registration, records, outward supplies, returns, annual returns, TCS, job work, information, delegation and other matters.
13. CBIC has used Section 168(1) to issue instructions and clarifications on practical GST implementation issues.
14. Section 168 has been used to promote uniformity across central tax field formations.
15. Section 168 should be read along with the relevant substantive provisions of the CGST Act and the applicable rules and notifications.
16. A Board instruction should not automatically be treated as equivalent to an Act, rule or notification.
17. Section 168A is a separate provision dealing with extension of time limits in special circumstances.

Section 168 vs Other Important Provisions

Section	Subject	Main function
Section 164	Power of Government to make rules	Enables Government to frame CGST Rules
Section 165	Power to make regulations	Enables the Board to make regulations
Section 166	Laying of rules, regulations and notifications	Provides parliamentary laying mechanism
Section 167	Delegation of powers	Allows specified powers to be exercised by another authority/officer
Section 168	Instructions or directions	Promotes uniform implementation by central tax administration
Section 168A	Extension of time limit	Allows Government to extend specified time limits in force majeure circumstances
Section 169	Service of notice	Provides methods for serving notices and other communications

The CGST Act places these provisions consecutively in Chapter XXI, reflecting their role in administration and implementation of the legislation.

Conclusion

Section 168 of the CGST Act provides the Board with the statutory power to issue orders, instructions and directions to central tax officers for ensuring uniformity in the implementation of GST law.

This provision plays an important administrative role because GST is implemented through a large network of central tax officers and field formations. A common instruction from the Board can help ensure that similar statutory provisions are administered consistently across different jurisdictions. The statutory text expressly requires the officers and other persons employed in implementation of the Act to observe and follow such orders, instructions or directions.

Section 168(2) performs a different but related function. It identifies specific provisions where the Commissioner referred to in those provisions means a Commissioner or Joint Secretary posted in the Board, who exercises the specified powers with the approval of the Board. The current consolidated Act contains a list of such provisions, which has been modified over time through amendments to the GST law.

👉 Read More → Section 167 – Delegation of powers

In practical GST administration, Section 168 has been used extensively for issuing circulars, clarifications and instructions. Examples include instructions concerning refund procedures and the interception and inspection of goods in movement, both of which expressly relied on Section 168(1) for promoting uniformity in implementation.

At the same time, Section 168 should not be confused with the Government’s rule-making power under Section 164, the Board’s regulation-making power under Section 165 or the delegation mechanism under Section 167. Each provision has a separate statutory purpose.

For taxpayers, the practical importance of Section 168 is that applicable CBIC instructions and circulars can provide important guidance on how the central tax administration is expected to implement GST provisions. However, businesses should always read such instructions together with the CGST Act, CGST Rules, relevant notifications and applicable judicial decisions rather than treating an administrative instruction as a replacement for the statutory law.

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