Rajya Sabha passes bill to raise age Limit of President, Members of GSTAT [Read Bill]

The Rajya Sabha approved a bill on Wednesday to facilitate the setting up of Goods and Services Tax appellate tribunals (GSTAT). The adopted law makes significant changes to the conditions of selection for tribunal members and creates a minimum age limit of 50 years for both members and presidents of the tribunal.

The House passed the Central Goods and Services Tax (Second Amendment) Bill for 2023.

The bill was approved without the presence of opposition members, who had been suspended for many days.

Nirmala Sitharaman, the finance minister, proposed the bill for discussion. The Lok Sabha previously approved the bill on Tuesday, which aims to amend the Central Goods and Services Tax Act of 2017.

The recommended amendments aim to improve the present structure of the Central Goods and Services Tax (CGST) Act, 2017, notably addressing the tax and collection of CGST on intra-state goods and services transactions.

At this moment, 28 tribunals are being set up.

The bill seeks to broaden the pool of suitable candidates for judicial appointments to these tribunals. It includes a provision that allows advocates with at least ten years of expertise, preferably in indirect taxation, to serve as judicial members.

The minimum age for appointment as a member or president of the tribunal is fixed at 50 years, ensuring that individuals holding these critical responsibilities have a wealth of experience. Furthermore, the bill raises the age limits for the tribunal’s president from 67 to 70 years old and the age limit for members from 65 to 67 years old.

The bill emphasises the importance of these amendments by stating that the non-constitution of GSTAT deprives taxpayers of a second appellate remedy. As a result, taxpayers have been forced to seek settlement directly from the High Court, which places an excessive burden on them. The bill aims to improve the effectiveness of the GST appellate system by streamlining the process.