Central Govt likely to set up 4-member GST Appellate Tribunal in each State

The Central Government is likely to set up a 4-member Goods and Services Tax Appellate Tribunal (GSTAT) in each state. The primary objective of this tribunal will be to handle any disputes that may emerge concerning the GST.

Each state's appellate tribunal will be composed of two technical members, one appointed by the central government and the other by the respective state, in addition to two judicial members.

It was informed that every state appellate tribunal will be equipped with two division benches, enabling them to handle a greater number of appeals.

The primary focus of the national appellate bench will be on hearing appeal cases related to disputes between the department and assessee concerning the 'place of supply' under the GST regime. Further, the bench will not entertain any appeals regarding conflicting decisions made by state appellate tribunals.

The Union Finance Minister Nirmala Sitaraman presided over the 50th meeting of the GST Council on 11th July 2023 including Revenue Secretary, CBIC chairman said that the Goods and Service Tax Appellate Tribunal will be introduced and the amendment would be notified before 1st August. Therefore, the same could be brought into operation at the earliest.

Further, the council has recommended the Chief Secretary of Maharashtra to be nominated as one of the members of the Search cum selection committee as per Section 110(4)(b)(iii) of Central Goods and Services Tax Act 2017. Regarding the number of State Benches, it was decided to start them in a phase wise manner.

Regarding this matter, the states' comments have been received, and following discussions between officials from both the Centre and the States, the proposal will be submitted to the parliament for its approval.

The GST Council has recommended the Rules governing appointment and conditions of President and Members of the proposed GST Appellate Tribunal for enabling smooth constitution and functioning of GST Appellate Tribunal. However, the whole process of setting up a tribunal will take 7-8 months.

Before the amendment the supreme court, the benches of justice DY Chandrachud and Hima Kohli Seeking the Central government to establish a GST appellate tribunal on urgent basis for reducing the bench petitions filed before them.

Subsequently the Goods and Services Tax Appellate Tribunal (Appointment and Conditions of Service of President and Members) Rules, 2023: The Council has recommended the Rules governing appointment and conditions of President and Members of the proposed GST Appellate Tribunal for enabling smooth constitution and functioning of GST Appellate Tribunal.

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