GST Council to Finalize Rules for GST Appellate Tribunals
Date: December 20, 2024
Category: GST Recent News
Read Time: 4 Minutes
The GST Council is expected to approve key rules and procedures for the functioning of the GST Appellate Tribunals (GSTAT) during its meeting on December 21, 2024. This marks a critical step toward operationalizing these tribunals and easing the legal burden on businesses and courts.
Key Highlights
Approval of GSTAT Rules
The Council will finalize rules and procedures for GSTAT operations.
GSTAT will feature:
A Principal Bench in Delhi.
31 State Benches across the country for better accessibility.
Objective
To provide businesses and tax authorities a structured appeals mechanism for disputes under GST.
To reduce the backlog of GST-related cases in high courts, which totaled 14,227 appeals as of August 2023.
Tribunal Structure and Composition
Tribunal Members:
Judicial Members: Retired high court judges with expertise in legal procedures.
Technical Members: Retired bureaucrats from ministries like Finance or Law with subject-matter expertise.
Unified Framework: GSTAT will consolidate the functions of:
Customs, Excise, and Service Tax Appellate Tribunal (CESTAT).
State VAT Tribunals.
Significance of GSTAT
- Ease of Litigation: Businesses and tax authorities will benefit from a dedicated forum for appeals.
- Judicial Relief: High courts will experience reduced caseloads, enabling faster resolution of other disputes.
- Accessibility: Decentralized benches ensure convenience for litigants across India.
Timeline and Background
The tribunal’s establishment faced delays since the introduction of GST in 2017, due to administrative hurdles.
The Central Goods and Services Tax (Second Amendment) Bill, 2023, cleared by Parliament, enabled the tribunal’s implementation.
What’s Next?
Once the rules are approved:
GSTAT operations will commence.
Businesses can appeal orders from the Adjudicating Officer or the Commissioner of Appeals.
