Since the implementation of the Goods and Services Tax Act (GST Act), 2017, supreme court, high courts and taxpayers who struggle without having a proper authority to resolve the disputes have been continuously requesting to constitute a Goods and Services Tax Appellate Tribunal ( GSTAT ).
According to the reports, a 4- member appeal panel is likely to be established in each state to streamline and hasten the adjudication of Goods and Services Tax disputes ( GST ). Each state appeal tribunal would include two judicial members as well as two technical members (one officer from the centre and one each from the states).
However, the whole process would take about 7-8 months for setting up benches in each state as well as a national appellate tribunal.
During the GST Council’s 47th meeting held in Chandigarh on 28th and 29th June, 2022 under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman, has decided to constitute the Group of Ministers in relation to the Constitution of GST Appellate Tribunal.
Also, the report on GST Appellate Tribunals from the abovementioned group of state ministers was adopted with certain amendments at the 49th GST Council meeting last month. It was decided to circulate the necessary GST law amendments to the states for feedback.
As per the sources, a centralised process for appointing judges would be prudent. It would be a good idea to include Supreme Court judges on the selection committee. This needs further debate between the centre and the states.
Presently, taxpayers who are dissatisfied with the tax authority decision must bring an action in the appropriate High Court. Due to the High Courts’ existing case backlog and lack of a specialised bench to handle GST cases, the resolution procedure takes longer.
Thus, even the high courts and the taxpayers unanimously requested the centre to take an action. Also, recently the industrialists also requested to implement a temporary provision to take up the appeals.
The central government may implement a temporary measure to accept the appeal by taking a portion sum from the taxpayer up until the GSTAT is founded, per the industrialists’ request. And it will be likely to happen soon.
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