GST Council asks Govt to Expedite Establishment of Appellate Authorities

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Considering the large number of orders of the Authority for Advance Rulings (AAR), the GST Council has asked the Centre and the State Governments to expedite the establishment of appellate authorities for the aggrieved entities.

With AARs in different states started giving rulings since March, it has become imperative for the Centre as well as states to set up the Appellate Authority for Advance Ruling (AAAR), an official said.

“The Secretariat of the GST Council has shot off letters to the states as well as the Central Board of Indirect Taxes and Customs (CBIC) to nominate members to the AAAR on an urgent basis so that they can start functioning,” the official told PTI.

So far only 12 states, including West Bengal, Gujarat, Madhya Pradesh, Rajasthan, Tamil Nadu and Uttar Pradesh, have issued notifications for setting up AAARs. However, these have not become operational as the members have not yet been appointed.

The State GST Laws mandates two members in the appellate authority, i.e, the Chief Commissioner of Central tax as designated by CBIC and the Commissioner of State tax. The authority shall pass order within 90 days of the filing of appeal.

Under the GST (Goods and Services Tax) law, an aggrieved party can file an appeal against the order of the AAR within a period of 30 days, which may be further extended by a month.

As per the law, all states are required to set up at least one AAR for seeking advance ruling over GST levy and one appellate authority to hear appeals against the AAR order.