GSTAT to Begin Operations by End of FY25: Revenue Secretary
Revenue Secretary Sanjay Malhotra confirmed that the Goods and Services Tax Appellate Tribunal (GSTAT) will begin operations by the end of FY25. This development aims to address GST-related disputes effectively, fostering better compliance and clarity in the taxation system.
Key Highlights
1. Progress Update
GSTAT is anticipated to hear cases starting in March 2025, according to an announcement made during the State Bank of India’s Annual Business and Economic Conclave. Additionally, the appointment of Justice (Retd) Sanjaya Kumar Mishra as GSTAT President in May 2023 reflects the government’s commitment to expediting the tribunal’s launch.
2. Pending Appeals
Currently, over 14,000 GST appeals await resolution. Therefore, GSTAT will play a crucial role as an appellate body, enabling businesses to challenge decisions made by the first appellate authority in a more systematic manner.
3. Structure and Operations
- Principal Bench: Located in New Delhi.
- State Benches: Approximately 44 across India.
Composition:
- Three members from the central government.
- One member from the state government.
Staffing Progress:
The recruitment process for tribunal members and staff has concluded, and half of the bench locations are finalized. However, logistical issues have delayed the identification of the remaining locations.
Technology-Driven Operations:
The tribunal will operate with a paperless system, leveraging advanced IT infrastructure. This digital-first approach ensures efficient case handling and transparency.
4. Future Outlook
GSTAT is expected to resolve long-standing disputes more efficiently, thereby strengthening the indirect tax framework. Its establishment signifies a vital step toward reducing procedural delays and ensuring justice for taxpayers.
Implications
For Taxpayers:
Taxpayers can expect a more structured and transparent mechanism for dispute resolution, reducing the uncertainties associated with prolonged appeals.
For GST Governance:
The tribunal’s operation will promote faster resolution of cases and improve confidence in the GST system. Moreover, it reinforces the government’s focus on fostering a taxpayer-friendly environment.
In conclusion, GSTAT’s operationalization is a transformative step, ensuring a smoother dispute resolution process and boosting the efficiency of India’s tax administration.
