CGST Section 5: Powers of Officers

Section 5 lays down the statutory framework governing the exercise and delegation of powers by officers of central tax. It ensures orderly administration by defining who may exercise powers, on whose behalf, and subject to what controls. The provision balances administrative flexibility with safeguards against arbitrary or overlapping exercise of authority.

Sub-section (1): Exercise of Powers by Officers of Central Tax

This sub-section provides that an officer of central tax may exercise powers and discharge duties under the CGST Act subject to conditions and limitations imposed by the Board.

Key points:

• Powers under the Act are not absolute.

• The Central Board of Indirect Taxes and Customs may regulate the manner, scope, and limits of such powers through circulars, instructions, or orders.

• This ensures uniformity in administration and prevents inconsistent application of GST provisions across jurisdictions.

In practice, most operational powers, such as adjudication limits, audit authority, or recovery actions, are governed by Board-issued instructions under this sub-section.

Sub-section (2): Exercise of Powers of Subordinate Officers

This provision enables a senior officer to exercise the powers and discharge the duties of any subordinate officer.

Practical implications:

• Avoids administrative paralysis due to absence, vacancy, or workload imbalance.

• Enables supervisory officers to directly act in matters otherwise assigned to subordinates.

• Ensures continuity in proceedings such as adjudication, recovery, or enforcement.

However, this power is generally exercised in line with internal administrative orders to prevent routine bypassing of statutory hierarchies.

Sub-section (3): Delegation of Powers by the Commissioner

This sub-section authorises the Commissioner to delegate his powers to subordinate officers, subject to conditions and limitations specified by him.

Key aspects:

• Delegation must be express and conditional.

• Powers once delegated are exercised in the name of law, not merely as administrative assistance.

• Delegation orders often specify:

  • Nature of powers delegated

  • Monetary thresholds

  • Jurisdictional limits

This provision is central to decentralised GST administration, particularly for adjudication, audit, and recovery functions.

Sub-section (4): Restriction on Appellate Authority

This is a non-obstante clause overriding other parts of Section 5. It clearly states that an Appellate Authority cannot exercise the powers or discharge the duties of any other officer of central tax.

Legal significance:

• Maintains strict functional separation between adjudication and appellate functions.

• Preserves the principles of natural justice and independence of appellate proceedings.

• Prevents role confusion where appellate officers might otherwise assume original jurisdiction powers.

This sub-section is frequently relied upon in litigation challenging jurisdictional overreach by appellate authorities.

Practical and Litigation Significance

Section 5 is often invoked in disputes relating to:

• Validity of delegation of powers

• Jurisdiction of officers issuing show cause notices

• Whether an officer acted within prescribed limits

• Improper exercise of powers by appellate authorities

A clear understanding of this section is essential while examining the legality of GST proceedings, especially in writ petitions and jurisdiction-based challenges.

Section 5 provides the operational discipline for GST administration. By regulating exercise, delegation, and limitation of powers, it ensures efficiency without compromising legal accountability or procedural fairness.