GST Appellate Tribunals to be set up by Mid-Financial Year 2024-2025

Sources from the State GST confirm that the appointment of members and the establishment of infrastructure for Appellate Tribunals are underway.
GST Appellate Tribunals - Mid-Financial Year - TAXSCAN

A significant development is on the horizon for taxpayers and professionals dealing with Goods and Services Tax (GST) disputes awaiting to file appeals. An appellate tribunal specifically dedicated to GST matters is expected to begin function in the latter part of the current fiscal year.

This anticipation stems from a notable increase in pending appeals under central GST, rising from 5,499 cases in the fiscal year 2020-21 to a substantial 14,227 cases as of June 2023, as disclosed by Union Minister of State for Finance, Pankaj Chaudhary, during a Lok Sabha session.

Unlike the realm of income tax, where a quasi-judicial appellate tribunal offers a route for resolving disputes between assesses and the tax department, the GST landscape has lacked such recourse until now. Taxpayers entangled in GST-related disputes had no alternative but to approach high courts to resolve conflicts with the department.

The GST Council, in its 49th meeting, approved the establishment of GST appellate tribunals nationwide, with state benches to be rolled out in phases. A pivotal step in this direction was the issuance of a notification by the revenue department on September 14, signaling the creation of 31 benches across 36 states and Union territories.

Vivek Jalan, Chairperson of the National Fiscal Affairs and Taxation Committee at the Bengal Chamber of Commerce and Industry expressed optimism regarding the imminent GST Appellate Tribunal (GSTAT), that post the general elections, the tribunal is expected to commence operations, with two benches slated for establishment in Calcutta to oversee appeals from Bengal, Sikkim, and Andaman & Nicobar Islands.

Speaking at an event organized by the Bengal Chamber, Jalan highlighted the dual benefits anticipated from the tribunal’s establishment—accelerated case resolutions leading to a cleaner financial outlook for companies. State GST sources corroborated this update, confirming progress in member appointments and infrastructure setup for the tribunal.

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