GSTAT to Be Operational by End of FY25: Revenue Secretary
Last Updated: November 21, 2024
Sanjay Malhotra, the Revenue Secretary, announced that the Goods and Services Tax Appellate Tribunal (GSTAT) will start functioning by the end of this financial year. During the State Bank of India’s Annual Business and Economic Conclave, he emphasized the rapid progress toward achieving this milestone.
What Is GSTAT?
The Goods and Services Tax Appellate Tribunal (GSTAT) is a judicial body that resolves GST-related disputes. It provides an appellate platform for cases challenging the decisions of first appellate authorities. This tribunal is essential for streamlining and expediting GST-related dispute resolution.
Key Highlights
Timeline and Readiness
- Authorities expect GSTAT to begin hearing cases by the end of FY25.
- Officials have completed interviews for tribunal members.
- Additionally, they have finalized approximately 50% of the bench locations.
Structure and Functionality
- The tribunal will feature a Principal Bench in New Delhi alongside 44 state-level benches across India.
- Each bench will include:
- Three members representing the central government
- One member from the state government
Leadership and Digital Advancements
- Justice (Retd.) Sanjaya Kumar Mishra assumed the role of GSTAT’s President in May 2023.
- Moreover, the tribunal will operate entirely paperless, using custom software to enhance efficiency and case management.
Why GSTAT Matters
Clearing Backlogs
Over 14,000 GST appeals are currently pending. This tribunal will play a vital role in resolving these disputes quickly and effectively.
Improving Business Confidence
GSTAT’s operations will:
- Ensure timely resolutions for GST disputes.
- Enhance compliance and the ease of doing business.
- Bring consistency and clarity to GST rulings.
Current Challenges and Solutions
Challenges
Although progress has been significant, some issues persist. Authorities are working to finalize rental agreements for bench locations and to procure the necessary IT infrastructure.
Solutions
The government is addressing these challenges with urgency, ensuring GSTAT is ready to meet its operational deadline.
GSTAT represents a significant step in India’s GST framework, promising efficiency and transparency in tax administration. Its operationalisation will not only benefit businesses but also contribute to a smoother taxation system. Stay tuned for more updates as the rollout continues!
