Article on ‘GST Appellate Tribunal’ by Nidhi Nawal, Director, Bizsolindia Services Pvt. Ltd. (October 2023)

After a six-year period of anticipation, the establishment of the GST Appellate Tribunal is constituted. It promises the world of taxation, a more streamlined and robust resolution process for tax-related issues.

The GST Appellate Tribunal in various states has been announced by Ministry of Finance, Department of Revenue vide Notification dated 14th September 2023

This Notification has been issued subsequent to the recommendations made in the 50th GST Council meeting.

During the introduction of the GST Act, the provisions of section 109 of the CGST Act – Constitution of Appellate Tribunal and benches Thereof, were challenged by filing writ petition before the Madras High Court by Revenue Bar Assn. against Union of India pertaining to to composition of the Appellate Tribunal. The Hon’ble Madras High Court struck down two provisions of the GST Act, related to the Tribunal out of which one being that – the tribunal shall consist of one Judicial Member, one Technical Member from Centre and one Technical Member from State was is struck down.

Following the judgement of High Court, the Government proposed amendments in the CGST Act, by the Finance Bill 2023 and the Section 109 of the GST Act is proposed to be amended to stipulate that-

  1. Principal Bench of the Appellate Tribunal at New Delhi shall consist of the President, a Judicial Member, a Technical Member (Centre) and a Technical Member (State).
  2. State Benches shall consist of two Judicial Members, a Technical Member (Centre) and a Technical Member (State).

Now from 14th September 2023 vide this Notification state wise benches have been constituted as follows having 2 & benches for large states and 1 bench for small states.

Now the GST Appellate Tribunal (Appointment and Conditions of Service of President and Members) Rules, 2023 will also be notified soon.

And accordingly, the Chief Secretary of Maharashtra will be nominated as one of the members of the search cum selection committee as per Section 110(4)(b)(iii) of CGST Act 2017.

Thereafter the appointment of president and members in terms of recommended rules to be notified will be processed/ the process will start.

The constitution of the GST Appellate Tribunal was supposed to be effective from 1st August 2023 however the notification on the constitution of the Tribunal has been issued on 14th September 2023.

Perhaps existing premises of CESTAT or STAT may be used till the time new place for GST Appellate Tribunals are found out. If this is undertaken, then it will help in reducing the substantial delay for the Members to enter the office and handle the GST matters.

Fortunately now the composition of the GST Appellate Tribunal has equal members i.e of Judicial and technical and whenever there are any conflicting decisions of different tribunals on the similar issue then the same will be referred to Principal Bench of the GST Appellate Tribunal at Delhi which will consist of a President, Judicial Member, a Technical Member from Centre and a Technical Member from State.

There was a spike of GST Litigations before the Supreme Court and High Court due to non-constitution of GST Appellate Tribunal which is likely to reduce now.

The Trade and Industry have been waiting for the constitution of the GST Appellate Tribunal from past 6 years. Last but not the least we highlight the time limit for filing the appeal before GST Appellate Tribunal which will commence from the date on which the President or the State President, as the case may be, of the Appellate Tribunal enters office.

 

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