After waiting a long five year since the implementation of the GST Act, the Central Government has finally decided to establish the appellate GST tribunal by next year end, sources said.
According to reports, the Centre is aiming to set up the GST Appellate Tribunals (GSTATs) across the country by December next year with the principal Bench in New Delhi to quickly resolve disputes relating to the key indirect tax, and further improve ease of doing business and boost tax collections.
This is amidst the taxpayers are eagerly awaiting an appellate body to resolve tax disputes. On August 18, the group of ministers (GoM) on tribunals convened by Haryana deputy chief minister Dushyant Chautala finalised that GSTAT will be set up with a principal Bench in New Delhi and similar Benches at the state level.
The appellate body will be headed by a judge from the Supreme Court or the Chief Justice of a High Court.
Each of these Benches will consist of a judicial officer equivalent to a high court judge and a senior tax officer from either the Centre or state as a technical member. Sources said that a state can host a maximum of five Benches and the state governments would be given certain relaxation on the nomination of technical members, meeting a key demand of states.
The Finance Act, 2023 will provide the necessary changes. The CGST Act will be modified to provide for all Benches of the same kind with a Principal Bench in New Delhi where the tribunal’s president will sit. The president will distribute the business or transfer cases among Benches. According to the eligibility criteria, the technical member from the Centre will be an Indian Revenue Service officer with 25 years of experience while the officer from the state is also required to have 25 years of experience, which states can reduce if no suitable person is found.
A four-member search and selection committee, headed by either the Chief Justice of the Supreme Court or his representative judge from the SC, will be tasked with the appointment of members to the Benches. It will also consist of the president of the GSTAT, a union government secretary and a state chief secretary. The chairperson will have a casting vote.
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