The Goods and Services Tax (GST) Council in its 49th meeting, accepted the Group of Ministers’ (GoM) recommendations on the creation of the GST Appellate Tribunal in the country. What is the GST Appellate Tribunal? What are its functions and mandate? Read on to know more, this is an important topic for the IAS exam polity as well as economy segments.
What is the GST Appellate Tribunal (GSTAT)?
Section (109) of the Goods and Service Tax Act, 2017 (CGST Act) mandates the constitution of a GST Appellate Tribunal (GSTAT) and its Benches.
- The GST Appellate Tribunal (GSTAT) is a specialized authority to resolve disputes related to GST laws at the appellate level.
- The principal bench of the GSTAT will be located in New Delhi, and each state can decide on the number of benches or boards they require, subject to GST council approval.
- The bench will consist of two judicial members and two technical members, with the selection panel including a senior judicial member from the State High Court.
Read more on the goods and services tax in the linked article.
Why was there a need for the GST Appellate Tribunal?
- In the absence of GST Appellate Tribunals, taxpayers often resort to writ jurisdiction to seek relief from High Courts. These High Courts may not have specialized benches for GST matters or expedite the cases due to pending backlogs.
- Since the implementation of GST in 2017, taxpayers and authorities have had divergent interpretations of the GST law, leading to various disputes mainly related to credibility (including transitional credits), levy, refunds, classification and valuation.
- Due to the backlog of cases, the constitution of the GST Appellate Tribunal (GSTAT) has been eagerly awaited for prompt disposal of disputes in recent years.
- Without a tribunal, taxpayers who feel aggrieved have no choice but to wait for justice while revenue authorities aggressively pursue their orders.
GST Appellate Tribunal Benefits
- GST Appellate Tribunal (GSTAT) is more adaptable and economical than regular courts, providing justice more quickly. Its procedures are simple enough for a layperson to understand, making it one of the most popular Alternative Dispute Resolution options.
- GSTAT will assist both the Union and State Governments in reducing conflicts between them and ensuring uniformity in dispute resolution.
- GST was designed with the goal of One Nation, One Tax to make taxation simple for citizens to comply with. The establishment of GSTAT aims to institutionalize the government’s citizen-centric approach to taxation.
- The creation of GSTAT will signal to the world that India is taking steps to make the country more business-friendly and a preferred destination for trade and commerce.
- The establishment of GSTAT is expected to bring relief to businesses by providing a quick and efficient process for resolving GST disputes.
- The establishment of GSTAT will facilitate the “ease of doing business” and make India a more lucrative destination for trade.
- An appropriate appellate structure in the form of GSTAT will provide an effective and speedy resolution of disputes, thereby reducing the burden on the judiciary.
Conclusion:
- Thus, the GST Appellate Tribunal is an important institution that has been created to handle disputes related to GST. Its wide jurisdiction and simple procedure will now make it an effective forum for resolving disputes between taxpayers and tax authorities.Â
- The GST Appellate Tribunal is expected to play a critical role in the implementation of GST and in ensuring that the tax system operates smoothly and efficiently.
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