GST Tribunal likely to be Set by December Next Year

After years of delay, the Center plans to establish the GST Appellate Tribunals (GSTATs) across the nation by December of the following year, with the principal Bench in New Delhi. These tribunals will help to swiftly settle disputes involving the important indirect tax, as well as to further ease business operations and increase tax revenues.

The country is still waiting for an appellate body to address tax issues even five years after the GST was implemented. The GSTAT will be established with a major Bench in New Delhi and equivalent Benches at the state level, it was decided on August 18 by the group of ministers (GoM) on tribunals, which was called by Dushyant Chautala, the deputy chief minister of Haryana.

A Supreme Court justice or a High Court Chief Justice will preside over the appellate body.

Each of these Benches will have a senior tax officer from the Center or the State serving as a technical member in addition to a judicial official with the status of a high court judge. According to sources, a state may host up to five Benches, and the state governments will be granted some latitude in the selection of technical members, which will satisfy a significant demand of states.

We can amend the CGST Act through the Finance Bill 2023 in the forthcoming Budget if the GST Council decides to do so immediately (likely next month). The establishment of the tribunals might take between nine and a year, according to a senior official.

The appointment of members to the Benches will be handled by a four-member search and selection committee, which will be presided over by either the Chief Justice of the Supreme Court or a judge who serves as the Chief Justice’s representative on the SC. The GSTAT president, a union government secretary, and a state chief secretary will also be included. A casting vote will be used by the chairperson.

The CGST Act will be changed to establish a Principal Bench in New Delhi, where the president of the tribunal will sit, together with all Benches of the same kind. The business or transfer cases will be divided among the benches by the president. According to the eligibility requirements, the technical member from the Center must be an Indian Revenue Service officer with 25 years of experience, and the state officer must also have 25 years of experience, though states may lessen this requirement if no appropriate candidate can be identified.