BUDGET 2022: Establishment of GST Tribunal may Proposed in Budget

According to two people familiar with the development, the government is considering establishing a Goods and Service Tax Appellate Tribunal (GSTAT) to expedite the resolution of indirect tax litigations in line with its efforts to reduce compliance burdens and promote ease of business, as taxpayers are currently forced to appeal in high courts, which is costly and time consuming.

Despite the fact that this is the issue of the GST Council, they said on the condition of anonymity that the coming Union Budget, which is likely to focus on decreasing compliance burdens, resolving litigation, and making businessmen’s lives easier, could mention a road map for the new body.

“The government has received complaints that GST personnel frequently pressurise taxpayers to pay assessed tax amounts, even if assessors maintain that such assessments are arbitrary and incorrect.” Many taxpayers pay GST dues in protest since they are unable to file a writ petition in the high court, which is time consuming,” one of them stated.

An e-mail question to the Union finance ministry and the Central Board of Indirect Taxes and Customs (CBIC) on the subject received no response.

“According to the GST law, the Union Cabinet approved a plan to establish a national GSTAT and regional benches in 2019, but there are some technical and operational concerns being resolved,” a second source said.

GSTAT was authorised by the Cabinet on January 23, 2019. “The Appellate Tribunal’s National Bench will be located in New Delhi.” GSTAT will be chaired by its president and comprise one technical member (Centre) and one technical member (state),” according to a Cabinet Secretariat statement issued following the meeting.