The Union Finance Minister Nirmala Sitharaman will preside over the 50th Goods and Services Tax (GST) Council meeting, which will be held on 11th July 2023. Since the start of the GST and during its protracted six-year voyage, the Goods and Services Tax Appellate Tribunal (GSTAT) has never been established.
The reports stated that the council has already taken the issue into consideration and will be resolved soon. As per the reports, the main agenda for the meeting will be the taxation issues of online gaming, horse racing and casinos.
According to the reports, a 4- member appeal panel is likely to be established in each state to streamline and hasten the adjudication of Goods and Services Tax disputes (GST). Each state appeal tribunal would include two judicial members as well as two technical members (one officer from the centre and one each from the states).
However, the whole process would take about 7-8 months for setting up benches in each state as well as a national appellate tribunal.
As it’s the 50th GST Council meeting, it is expected that the members will come up with the solution. The pressure to constitute a GSTAT is not just from the public, but also from the High Courts and Supreme Court.
In the case of M/S Torque Pharmaceuticals Pvt. Ltd. vs Union Of India And 5 Others, Allahabad High Court directed the Central Government to create a State Bench of Goods and Service Tax Appellate Tribunal (GSTAT) at Prayagraj and Area Benches at Ghaziabad, Lucknow, Varanasi, and Agra.
Why do we need a GST Appellate Tribunal?
The primary objective of creating a GSTAT is to settle disputes between taxpayers and the government at both the central and state levels. In order to clarify the situation and find a solution, an appeallate tribunal is necessary because the number of disputes, refunds, classifications, etc., was growing daily.
The High Courts receive writ petitions from the taxpayers, but the court only offers temporary relief and instructs the taxpayers to bring up the matter once it is constituted. The high court is likewise faced with a lot of problems as a result of these writ petitions.
The high courts’ and taxpayers’ burdens will be alleviated by the creation of the GSTAT. The appropriate remedy will be available for the taxpayers.
The members are still discussing the constitution of the GSTAT. According to the council members, there are some practical difficulties to set up the same.
Section of Constitution of GSTAT under CGST Act
According to Section 109(1) of the Central Goods and Services Tax Act of 2017, the Central Government may establish an Appellate Tribunal to hear appeals against decisions made by the first level appellate authority or the revisional authority, on the recommendation of the GST Council, as of such date as may be specified therein.
Formation of GoM for Constitution of GSTAT
The Central Government, as a first step to set up an appellate tribunal, formed a Group of Ministers. Under the chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharama, the GST Council made the decision to form the Group of Ministers (GoM) in regard to the establishment of the GST Appellate Tribunal at its 47th meeting, which was held in Chandigarh on June 28 and 29, 2022.
Proposals of GoM on GSTAT
The GoM has suggested that the tribunals should consist of two judicial members, and one technical member each from the Centre and states, besides a retired Supreme Court judge as president.
Conclusion
Tycoons in business believe that the establishment of the appellate tribunal will unquestionably aid in the swift resolution of taxpayers’ complaints and conflicts. Because the GSTAT is not constitutional, there are more and more GST scams, claims, and refunds every day, and the rights of taxpayers are ignored. Every time the GSTAT is supposed to be on the agenda for the GST council meeting, it ends up being a never-ending discussion. At the 50th GST Council meeting, it is anticipated that the council would make an appropriate announcement.
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