FM introduces CGST Amendment bill in Lok Sabha to make way for GST Tribunal

The Finance Minister introduced THE CENTRAL GOODS AND SERVICES TAX (SECOND AMENDMENT) BILL, 2023, in the Lok Sabha today, i.e., December 13, 2023. This was done to align the provisions of CGST Act 2017 with the Tribunal Reforms Act 2021 and in order to initiate the administrative process for Operationalizing the Goods and Service Tax Appellate Tribunal.

STATEMENT OF OBJECTS AND REASONS

Section 109 of the Central Goods and Services Tax Act, 2017 (12 of 2017) provides for Constitution of Goods and Services Tax Appellate Tribunal, which is the second appellate authority within the Goods and Services Tax framework for hearing appeals against the orders passed by the Appellate Authority under the Central Goods and Services Tax Act, 2017 and the State Goods and Services Tax Acts. Non-constitution of the Goods and Services Tax Appellate Tribunals is denying the taxpayers of second appellate remedy and consequently the taxpayers are seeking relief directly from the High Court, thereby burdening the High Courts.

The amendments to sections 109 and 110 of the Central Goods and Services Tax Act, 2017 for enabling the creation of the Central Goods and Services Tax Appellate Tribunals were notified vide notification No. 28/2023-Central Tax dated 31st July, 2023. During the process of operationalisation of the said Tribunal, it was observed that certain provisions of the Central Goods and Services Tax Act, 2017 need to be aligned with the Tribunal Reforms Act, 2021 (33 of 2021).

Accordingly, the provisions of the Central Goods and Services Tax Act, 2017 are being aligned with the Tribunal Reforms Act, 2021, to initiate the administrative process for operationalisation of the Goods and Services Tax Appellate Tribunals at the earliest.

The Bill seeks to achieve the above objectives.

Click on the link given below to download a copy of the Bill.