In a significant move the government has proposed an amendment to the Section 171 of the Central Goods and Services Tax (CGST) Act, in the Union Budget 2024-25 presented by Finance Minister NIrmala Sitharaman in the Parliament yesterday. This amendment empowers the government to notify the GST Appellate Tribunal (GSTAT) to handle anti-profiteering cases, and it introduces a sunset clause for accepting such cases.
The proposed amendment allows the government to designate a date after which the Authority for Anti-Profiteering will cease to accept new applications for examination. This change aims to bring clarity and efficiency to the handling of GST disputes.
In an official statement released on 6th May 2024, the Press Information Bureau (PIB) had announced that, “Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, administered the oath of integrity and secrecy to Justice (Retd.) Sanjaya Kumar Mishra as the President of the GST Appellate Tribunal (GSTAT) in New Delhi today.”
“Justice (Retd.) Mishra’s appointment marks the beginning of the operationalization of the GSTAT, a crucial body for resolving GST-related disputes. As per the approval of the GST Council, the Government has notified the Principal Bench to be located in New Delhi and 31 State Benches at various locations across the country. The process for appointing Judicial Members and Technical Members is already in progress. The Tribunal will ensure swift, fair, judicious, and effective resolution of GST disputes, significantly reducing the burden on higher courts”, the
The Finance Bill stated as follows:
“In section 171 of the Central Goods and Services Tax Act:
(a) In sub-section (2), the following proviso and Explanation shall be inserted:
‘Provided that the Government may by notification, on the recommendations of the Council, specify the date from which the said Authority shall not accept any request for examination as to whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him.
Explanation.––For the purposes of this subsection, “request for examination” shall mean the written application filed by an applicant requesting for examination as to whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him.’;
(b) The Explanation shall be renumbered as Explanation 1 thereof, and after Explanation 1 as so renumbered, the Explanation shall be inserted:
‘Explanation 2.––For the purposes of this section, the expression “Authority” shall include the “Appellate Tribunal”.'”
As the GST Appellate Tribunal takes on the additional responsibility of handling anti-profiteering cases, its effectiveness in this new role remains to be seen.
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