GST Appellate Tribunal (GSTAT) Establishment: A Chronology of the 7 Year Long Wait
The journey of establishing the Goods and Services Tax Appellate Tribunal (GSTAT) has been marked by legal challenges, legislative amendments, and administrative actions.
GST Appellate Tribunal: A Long-Awaited Resolution for Resolution of GST Disputes Taxpayers facing disputes under the Goods and Services Tax (GST) can finally seek relief through a specialized forum. The Goods and Services Tax Appellate Tribunal (GSTAT) is yet to become operational, to address a critical gap in the legal framework for appellate and dispute resolution procedures in the...
GST Appellate Tribunal: A Long-Awaited Resolution for Resolution of GST Disputes
Taxpayers facing disputes under the Goods and Services Tax (GST) can finally seek relief through a specialized forum. The Goods and Services Tax Appellate Tribunal (GSTAT) is yet to become operational, to address a critical gap in the legal framework for appellate and dispute resolution procedures in the Goods and Services Tax Regime.
Resolving a Constitutional Challenge
Initially, the composition of the Goods and Services Tax Appellate Tribunal (GSTAT) faced a legal hurdle. The Madras High Court ruled that the tribunal's structure, with an equal number of judicial and technical members, was unconstitutional. This meant a majority could potentially lack legal expertise. The government promptly addressed this concern by amending the relevant law in the 2023 Finance Act, ensuring a judicial majority within the tribunal.
Composition of GSTAT is Unconstitutional, rules Madras High Court
Establishing the GSTAT Framework
The 49th GST Council meeting in February 2023 approved the establishment of the National Bench in New Delhi. This central body will be led by a president and include technical members from both the central and state governments.
Finance Ministry notifies Creation of National Bench of GSTAT
Appointment Rules and Bench Locations
The government enacted the "Goods and Services Tax Appellate Tribunal (Appointment and Conditions of Service of President and Members) Rules, 2019" to guide the appointment and functioning of tribunal members. Additionally, notifications designated locations for state benches, ensuring a geographically accessible dispute resolution mechanism.
Selection Process and Appointment of President
A Search-cum-Selection Committee was formed to identify qualified candidates. The Principal Bench in New Delhi was formally constituted, and sanction orders were issued for the president and member positions in February 2024. Further solidifying the GSTAT's leadership, the Appointment Committee of the Cabinet appointed Justice (Retd.) Sanjaya Kumar Mishra as the president, bringing valuable legal and administrative experience to the tribunal.
Read More: [BREAKING] Justice (Retd) Sanjay Kumar Mishra gets appointed as GST Appellate Tribunal Chairman
Looking Ahead
With the appointment of its president and the legal framework in place, the GSTAT is poised to become operational soon. This specialized tribunal will provide a much-needed platform for taxpayers to efficiently resolve GST-related disputes, promoting a more streamlined and taxpayer-friendly GST regime.
The Most Important Question Right Now!
Now, the very pressing question of the hour is whether the time limit for filing second appeals at the Goods and Services Tax Appellate Tribunal (GSTAT) has begun. If the deadline has begun, the stakeholders need much more clarity on the procedure for filing appeals and enable the functionalities for the same on the Goods and Services Tax Portal as well.
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